Sarbhai, who is head of regulatory relations for Asia-Pacific and the Middle East at Ripple, said he thinks that regulators are no longer taking a compartmentalized approach that takes distributed ledger technologies (DLT) such as blockchain in isolation from crypto assets themselves.
As the interview’s subtext implies, regulators have historically approached decentralized cryptocurrencies with circumspection – or otherwise outright hostility – while remaining more receptive to the potential benefits of blockchain. The prevailing sentiment used to be that the technology can bring major advantages to legacy systems across diverse industries, as well as to the world of of finance.
But Sarbhai today said he believes the tide is changing:
“A couple of years ago the narrative was blockchain good, crypto bad. But I think what we’re now seeing is that more and more regulators are taking the whole space in one conjunction [sic]. You cannot have runways built without airplanes… [T]hat narrative is thankfully changing and policymakers are recognizing there is a strong benefit that digital (crypto) assets bring.”
Sarbhai identified some of these benefits as improving financial inclusion and “removing barriers to commerce.” He substantiated his claims by pointing to recent developments in Thailand, which has provided a robust regulatory framework for crypto assets.
In the U.S. context, Sarbhai countered concerns that Ripple’s native token, XRP, is likely to come under a security classification – as several high-profile ongoing lawsuits allege.
He pointed to the open-source protocol of the XRP ledger and its independence from the corporation itself, emphasizing that RIpple controls only 7 percent of the validator nodes operative on the network…