On 19 December 2023, Monica Long, the President of Ripple, shared her predictions for the cryptocurrency landscape in 2024 on social media platform X. Her insights reflect a vision of significant evolution and maturation in the crypto industry.
Here’s a detailed breakdown of her key predictions and statements:
- Breaking the Speculative Hype Cycle: Long anticipates that 2024 will mark the end of the recurring cycles of extreme highs and lows, often driven by speculative hype, that have characterized the crypto industry since Bitcoin’s inception. She believes this change will precede the next ‘crypto summer.’
- Foundation for Real-World Utility: The focus, according to Long, will shift towards establishing a foundation for practical, real-world applications of cryptocurrency. This involves addressing key challenges like compliance, usability, and integration with existing financial systems.
- Pioneering Compliance in Decentralized Finance: Long predicts that the most significant breakthrough in 2024 will be in the area of compliance, particularly within decentralized finance (DeFi). This suggests a move towards more regulated and secure DeFi environments.
- Crypto Winter as an Opportunity: She views the current ‘crypto winter’ – a period of market downturn – as an advantageous time for dedicated developers. This period is seen as an opportunity to focus on solving substantial, real-world problems using blockchain technology.
- Emphasis on Compliance and Transparency: Long stresses that in 2024, the crypto industry needs to prioritize compliance to ensure customer and user safety. This shift is crucial for regaining trust lost due to past industry setbacks. Developing compliance tools within a decentralized framework is seen as a key area of innovation.
- Integration with Traditional Finance: Long notes the recent trend of traditional financial giants like Fidelity, BlackRock, PayPal, and Visa collaborating with crypto-native companies. She envisions a synergistic relationship where blockchain technology complements rather than replaces traditional banking systems.
- Benefits of Instant Cross-border Payments: She highlights the advantages of blockchain in enabling instant, cross-border payments without the need for intermediaries, benefiting both merchants and consumers.
- Focus on Greater Usability: Long points out that while many of Ripple’s partners appreciate the benefits of crypto, they do not wish to become crypto experts themselves. She emphasizes the need for crypto solutions that are easy to use and do not require users to manage their assets or navigate complex trading platforms.
- Mainstream Recognition and Institutional Adoption: Long acknowledges that cryptocurrency has reached a point of mainstream recognition. However, she believes that 2024 could be the year when institutional adoption for practical utility truly takes off, provided the industry maintains a compliance-first approach.
Approximately two weeks after Judge Torres’s significant ruling in the SEC vs. Ripple Labs case, Monica Long discussed Ripple’s partial victory in the lawsuit and its expanding international presence with CNBC. Long expressed her satisfaction with the court’s decision, which she noted has provided essential clarity for Ripple’s operations. According to Long, this verdict has enabled Ripple to re-engage with the U.S. market. However, she also emphasized that much of Ripple’s growth has occurred outside the U.S., particularly in regions with well-defined regulatory frameworks for cryptocurrencies.
Long identified the UK, Europe, Singapore, and Dubai as key regions that have established clear regulatory frameworks for cryptocurrencies. She attributed significant growth in Ripple’s business in these areas, especially in payment services, to these clear frameworks. Focusing on the UK, Long described it as a major hub for fintech and a country where Ripple is looking to increase its investment, in line with the UK’s ambition to become a leading crypto hub with specific regulations for crypto companies. She noted that Ripple’s presence in London has grown substantially, with the office more than doubling in size.
Further, Long mentioned Ripple’s extensive customer base across Europe and the Middle East, with Dubai being another crucial office location. She also pointed out Ripple’s growth in Asia and Latin America. Long specifically highlighted Latin America, with a significant office in Sao Paulo, as a region that is becoming increasingly vital for Ripple’s operations.