A written evidence document submitted by Ripple to the U.K. parliament discusses the potential benefits of XRP and other crypto assets to the U.K. government.
Despite a case of growing prominence, the adoption of cryptocurrencies has faced hurdles in countries like the U.K. due to regulatory and environmental concerns. To this end, Ripple submitted a written evidence document to the U.K. parliament, discussing the benefits of XRP and crypto to the country.
In a recent tweet, Edward Farina, Head of Social Adoption at XRP Healthcare, called the attention of the XRP community to the document, highlighting its prominence in the grand scheme.
Despite the document being dated September 2022, it highlights the efforts at communication between Ripple and the U.K. government regarding XRP and crypto adoption and their potential benefits to the country’s economic and financial standing.
In the document, Ripple acknowledged the efforts put in by the U.K. authorities in regulating the nascent crypto industry. These efforts include the Crypto-Asset Engagement Group proposed by the HM Treasury and The Financial Services and Markets Bill. The bill, introduced by The Parliament in July 2022, received Royal Assent on June 29, 2023.
Ripple further shared insights into the rudiments of blockchain and crypto assets. The company highlighted XRP as the native token of the XRP Ledger (XRPL). It emphasized the asset’s independence from Ripple Labs as a company.
Crypto Could Benefit the UK
Ripple then pointed out the potential benefits of XRP and other cryptocurrencies to the U.K. These benefits span both economic and social aspects.
From an economic standpoint, crypto and XRP have the potential to make financial transactions more affordable, faster, and more secure. This improves the existing financial framework offered through traditional means.
Moreover, the emergence of the crypto sector creates an entirely new industry that aligns with the U.K.’s strengths in tech and finance. This presents opportunities for firms with novel business models to flourish, contributing to the overall growth of the U.K.’s economy.
Ripple is already making efforts to expand its reach in the U.K. In April, Stuart Alderoty, the firm’s General Counsel, disclosed the company’s plans to grow the business in London.
On the social front, crypto holds the promise of improving financial inclusion across the country. They can benefit the 1.2 million unbanked individuals lacking access to essential financial services.
Ripple Emphasizes Need for Regulation
Ripple emphasized the importance of a comprehensive regulatory framework for the crypto industry in the U.K.
While acknowledging the country’s existing fintech success, infrastructure, and talent, Ripple highlighted the need for regulatory clarity to overcome the biggest obstacle U.K. crypto businesses face: uncertainty.
The lack of a holistic regulatory framework creates an environment where market participants may hesitate to innovate, restricting investment and impeding the expansion of operations.
XRP Transcends Environmental Concerns
Ripple highlighted the eco-friendly characteristics of XRP, underscoring its minimal environmental impact. They acknowledged the energy consumption linked to blockchain technology and emphasized the need to address this concern.
Ripple noted its strategic collaborations with Energy Web and the Rocky Mountain Institute to drive the process of decarbonizing blockchains, beginning with the XRP Ledger.
Ripple has made a firm commitment to attaining carbon neutrality by 2030 or even earlier. Additionally, Ripple actively supports the Crypto Climate Accord. This initiative aims to curtail the environmental impact of cryptocurrencies and foster a sustainable global financial ecosystem.
