It is common knowledge that China significantly dominates the bitcoin industry in terms of mining, trading and other general activities surrounding the technology.
Despite the various regulatory challenges that the industry has faced, over 70% of the cumulative bitcoin collective hashrate is still domiciled in China and controlled by Chinese mining pools.
Beijing-based Bitmain Technologies through its mining subsidiaries produces over 50% of the world’s bitcoin. These subsidiaries include BTC.com, AntPool, and Hashnest. This trend is a source of concern for many participants in the bitcoin community as to how much control this gives China offer a supposedly decentralized ecosystem.
In an interview with cryptocurrency-focused magazine, breaker, Ripple Lab’s chief strategist, Cory Johnson noted that the White House is already showing concerns about China’s dominance over bitcoin and ether.
“The White House in particular seems to be thinking about what it means to have 80% of bitcoin mining taking place in China and a majority of ether mining taking place in China.” – Cory Johnson
“When you look at XRP, there is no mining, so from a foreign-control aspect or from an environmental aspect, XRP is a very different beast. And in conversations we’ve had with the administration, they seem to get that and think that might matter”, continued Johnson.
Similar concerns exists around XRP, considering that over 60% of its total supply is controlled by Ripple Labs. Critics of the company and the digital token hence suggest that it is not decentralized like other cryptocurrencies.
Notwithstanding, Johnson’s opinion is reflected by the relative adoption that the XRP token has experienced recently. This led to its significant surge in price in September which establishes it as the leading token in terms of recovery since the blanket slump in price of cryptocurrencies in 2018.
Ripple had announced the signing up of three financial services companies to its new XRP-focused product. The three companies, which includes payment providers MercuryFX, Cuallix and Catalyst Corporate Credit Union were announced as the first to sign up to xRapid by Ripple Labs CEO Brad Garlinghouse.
Johnson however based his suggestion of the US likely embracing of Ripple on the open mindedness and curiosity level that he has noticed while interacting with people in government and regulators.
“When I started to meet with people in government and regulators, I had very low expectations. I have been truly amazed at the open-mindedness, number one. And number two, the smart questions, sometimes even tough questions. There’s clearly a lot of homework going on”, says Johnson.
Iyke Aru is a seasoned author and educator in the blockchain and cryptocurrency industry. He has been in the business of crypto content writing for many years with thousands of his articles across several platforms on the internet. Iyke is based in Nigeria where he stands out as one of the most informed and credible figures in the cryptocurrency industry. Outside blockchain and crypto, you will most likely catch Iyke playing or discussing football with friends and family.