RippleNet Managing Director Asheesh Birla expects fintech firms to emerge as serious competitors to traditional banking institutions in 2021.
Birla took his prediction a little further and said that a cryptocurrency company could soon be able to buy an old financial institution:
“The tide is turning. We may even see a fintech or cryptocurrency company buying a traditional financial institution next year. ”
Birla said that the line between crypto and banking is blurring, providing more agile fintech companies the opportunity to leverage crypto to erode the market share of larger, slower-moving incumbent banks. According to Birla, this development will be achieved with more robust regulations in the sector. Stu Alderoty, Ripple’s General Counsel, also claims that regulating cryptocurrencies will be an important issue for Biden management:
“Smart, well thought out regulations that are effectively communicated and uniformly implemented can help level the playing field, unleash innovation and make adoption more common in the US.”
After years of calling for regulatory clarity, Ripple was sued by the Securities and Exchange Commission in December. According to FOX Business reporter Charles Gasparino, Biden’s SEC presidential election, Gary Gensler, has signaled that his agenda will include special-purpose purchasing companies (SPAC), fintech companies and cryptocurrency abuses.
In addition to taking on traditional financing, Ripple has an even more ambitious goal in mind: to reverse Ethereum’s dominance in the decentralized finance industry. Ripple’s DeFi President Michael predicts that the second-largest blockchain (Ethereum) will lose at least a quarter of its value deployed on different protocols to other blockchains:
“I believe at least 25% of the value distributed in DeFi by the end of 2021 will be in networks other than Ethereum.”
With the addition of smart contracts to XRPL with Flare, tokenization and decentralized exchanges, XRP can have an important place in the DeFi field.