Wednesday, March 3, 2021

Ripple Executives Unveils Cryptocurrency Predictions for 2021

Ripple’s senior management team have unveiled a number of cryptocurrency predictions for the rest of the months ahead in 2021.

In a blog post published on 19th January, the executives of the payment firm, Ripple, offered their predictions on what are likely upcoming this year in terms of crypto regulation, decentralized finance (DeFi), central bank digital currency (CBDCs), and the likely impact of scalability and sustainability in the crypto ecosystem for the rest of this year.

Read Also: Pornhub Adds XRP, Dogecoin (DOGE), Binance Coin (BNB), USDC, To Its Payment Options

Growth of Crypto Regulation in the U.S. Depends on Friendly Crypto Regulation

According to Ripple’s general counsel, Stu Alderoty, the growth of cryptocurrency in the United States depends on a friendly crypto regulation as the sector keeps maturing.

He predicted that the current administration of President Joe Biden will see the necessity of crypto regulation, hoping that “intelligent, well-thought-out regulations” can bring about innovation and mainstream adoption of digital currencies in the United States.

However, Alderoty did not directly address the lawsuit filed by the United States Securities and Exchange Commission (SEC) against Ripple for the illegal sale of XRP as an unregistered security.

Read Also: Ripple Moves to Bring XRP Ledger to the World of Central Bank Digital Currencies (CBDCs)

Trend of CBDCs Will Continue To Evolve

Regarding the fate of central bank digital currencies (CBDCs), James Wallis, Ripple’s vice president of central bank engagements, believes that the trend of digital currencies being pegged to fiat currencies will continue to evolve.

Wallis noted:

“Over the course of 2021, I expect to see greater evolution of cryptocurrencies, stablecoins, and CBDCs with each firm establishing their place in finance and payments through more defined use cases.”

Ethereum’s Market Share in DeFi Space Will Fall In 2021

Regarding decentralized finance, Ripple’s head of DeFi, Michael Zochowski, believes that the “truly useful” projects will grow their userbase as early projects consolidate, get acquired, or shut down. He further predicted that Ethereum’s market share in the DeFi space will fall in 2021.

“I believe at least 25% of the value deployed in DeFi by the end of 2021 will be on networks other than Ethereum.”

Read Also: World Economic Forum: XRP Is The Most Relevant Digital Asset For Wholesale CBDC

Fintech and Crypto Firms Will Continue To Challenge Traditional Financial Institutions

The general manager of Ripple’s institutional payment-providers network RippleNet, Asheesh Birla, predicts that the status quo that traditional financial institutions enjoy will continue to face a growing threat from financial technology and cryptocurrency firms:

“The tide is turning. It’s possible that we could even see a fintech or cryptocurrency company acquire a traditional financial institution this coming year.”

A Move Away from Proof-of-Work (PoW) Protocols

For better scalability and sustainability, Ripple CTO David Schwartz foresees a move away from proof-of-work (PoW) protocols:

“The fact of the matter is that PoW systems consume a lot of resources and energy. They also feature an inevitable bend towards centralization over time as the miners with the cheapest power become key stakeholders. 2021 will see technical innovations continue to improve blockchains…”

Read Also: Daniel Keem, Creator of DramaAlert Buys 1,000,000 XRP, Says XRP Is Going To $2 after Ripple-SEC Lawsuit

Also, the general manager of Ripple’s developer platform RippleX, Monica Long, predicted that 2021 will be the year of the realization of the initial goal of cryptocurrency:

“In 2021 we’ll see crypto make good on its original promise to remake finance as more accessible and equitable for the world’s underserved.”


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Tobi Loba
Tobi-Loba is a creative and an award-winning writer with over 5 million readers from all over the world. She has B.A in English and Literature from a reputable University and currently studying for her M.A in the same field. She recently became a contributor at Herald Sheets in order to satisfy her thirst in reporting crypto and blockchain occurrences, the interest she built over the years.

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