Dogecoin is not good for the crypto market, says Ripple CEO
Ripple CEO Brad Garlinghouse says searing inflation is creating “tailwinds” for bitcoin and the crypto industry, but has a warning for those following the dogecoin meme token.
“I’m actually not convinced, somewhat controversially I guess, that dogecoin is good for the crypto market,” Garlinghouse said during a panel discussion hosted by CNBC at the Fintech Abu Dhabi event. which aired on Tuesday.
Dogecoin, a cryptocurrency based on a viral internet meme of a Shiba Inu dog that started out as a joke in 2013, had a market capitalization reaching $ 88 billion in May this year.
It is now the 10th largest digital coin with a market value of nearly $ 30 billion, according to industry website CoinMarketCap.
“It was built as a joke and then it got some momentum from top people like Elon Musk,” Garlinghouse said.
“Dogecoin itself has an inflationary dynamic that would make me reluctant to hold it,” he added.
There is no hard limit on the total supply of dogecoins, which makes it different from some other important cryptocurrencies.
Garlinghouse, CEO of fintech firm Ripple, which issues the digital asset XRP, said rising inflation had accelerated interest in cryptocurrencies and made bitcoin a hedge against the inflation of the day.
“We are seeing inflation that we haven’t seen in decades,” Garlinghouse said.
“When people fear holding fiat currency that might swell and depreciate, they ask, ‘How can I hold other assets that don’t have the same inflationary dynamic? “”
Bitcoin hit a record high of nearly $ 69,000 per token earlier in November. Although it has fallen below $ 60,000 in recent days, its year-to-date return has outperformed even the most traditional inflation hedges, such as gold, which is considered a market preservative. purchasing power during periods of sustained high inflation.
“Bitcoin has a lot of momentum,” Garlinghouse said. The largest digital coin had a market capitalization of nearly $ 1.1 trillion in November and has seen increased institutional adoption and more common real-world use cases during the pandemic.
“I think if you take a step back and see the long term… these are real technologies that are fundamentally reshaping the way our financial infrastructure works and I’m very optimistic and very optimistic about the longer term horizon,” added Garlinghouse.
Focus on the Middle East
Ripple, which recently opened a new office in the Dubai International Financial Center and plans to employ 250 people, also announced it will partner with Dubai-based start-up Pyypl to enable cross-border payments and operate the transfer corridor between the United Arab Emirates and Saudi Arabia, which is estimated to be worth $ 78 billion per year.
“This has been a year of gang fighting for Ripple,” Garlinghouse said, despite an ongoing SEC investigation into the status of its XRP digital token.
Garlinghouse said the Middle East was one of Ripple’s fastest growing markets, given what he called a lack of “clarity” from US regulators.
“It’s unfortunate that the world’s largest economy, which really helped catalyze the Internet as we know it today… is really lagging behind,” Garlinghouse said, while praising countries like the Arab Emirates. United, Japan, Singapore and Switzerland for their leadership in regulating the crypto sector.
“We’re looking to add around 250 employees, and more than half of them will be outside of the United States,” he said.