Red hot inflation is creating “tailwinds” for bitcoin and the crypto sector, says Ripple CEO Brad Garlinghouse, but dogecoin tracking users should beware.
In a CNBC-moderated panel discussion at the Fintech Abu Dhabi event on Tuesday, Garlinghouse said that he is not convinced that dogecoin is good for the crypto market.
A cryptocurrency named Dogecoin, based on the Shiba Inu dog meme that went viral on the internet in 2013 had a market capitalization as high as $88 billion in May of this year.
Its value has now reached almost $30 billion, according to crypto tracker website CoinMarketCap, making it the 10th largest digital coin.
“It started out as a joke, and then people like Elon Musk got behind it,” Garlinghouse said.
In addition to these inflationary dynamics, “Dogecoin’s own dynamics would discourage me from holding it,” he said.
In contrast to some other prominent cryptocurrencies, dogecoin has no hard limit on its supply.
The company, which announced it would open an office in the Dubai International Financial Center this week, said it was also partnering with a Dubai-based start-up company to facilitate cross-border payments and use the $78 billion remittance corridor between the UAE and Saudi Arabia.
“It has been a gangbuster year for Ripple,” Garlinghouse said, despite a SEC investigation into the company’s digital token XRP.
In response to what he called a lack of “clarity” from U.S. regulators, Garlinghouse said the Middle East was one of Ripple’s fastest growing markets.
There is something unfortunate about the largest economy in the world, which helped create the internet as we know it today…it is “falling behind,” he said, noting that countries such as the UAE, Japan, Singapore, and Switzerland have provided leadership in crypto regulation.