Ripple CEO Calls Facebook’s Entry Into Crypto “Brazen,” Calls Out For A Level Playing Field


  • Brad Garlingouse, Ripple CEO calls out for a fair playing field for everyone to play
  • Bitcoin is controlled by Chinese miners’ technologies just like Ether unlike Ripple
  • The US needs to stay ahead of China just like it did with the internet in its earliest days back in the mid-90s

Ripple CEO Brad Garlinghouse has made his stance on Facebook’s cryptocurrency project Libra very clear, follow the rules.

On July 17, Garlinghouse tweeted that the social media giant's “goal to create a new fiat currency” should be held to the same standard as any other regulated financial institutions.

Most recently, he joined CNBC’s “Squawk Alley” to further talk about Libra and its

“Silicon Valley arrogance.”

Facebook’s “Brazen” Entry into Crypto

On the macro level, Garlinghouse believes, it’s been good for the world because it has brought a lot of attention on technology like blockchain that he says can benefit mainstream banking and consumer experiences around banking.

Having said that, there’s some “Silicon Valley arrogance” with how Facebook approached the cryptocurrency project, Garlinghouse said.

This arrogance, he says can be seen in the way they are “brazenly” running into things

“without checking some boxes”.

Facebook’s approach to this, he says has been all wrong.

He points out how the consortium of Library Associations have zero banks which is “stark contrast” to where he thinks the world should come from.

And Ripple, he said at its core has been focused on making sure they are partnering with the existing system.

Moreover, David Marcus, the head of Calibra, announced Libra as the end of Western Union, which Garlinhouse says has been a “huge call of action” to banks.

A US-China Situation?

On asking if this resembles a US-China situation, Garlinghouse says,

“there's no question that there are elements that are relevant to US national policy.”

Bitcoin is controlled by Chinese miners’ technologies just like Ether unlike Ripple which is developed on top of an ecosystem called the XRP ledger, a decentralized and open platform that has much more of democracy as compared to Bitcoin or Ether technologies, said Garlinghouse.

He says, there is a “lot of strategic foresight coming from China” and they are aware of these transactions and enabling it to thrive.

“The US needs to stay ahead of that the way we did the internet, in the earliest days of the internet back in the mid-90s,”

he added.

And how does the US stay ahead of China?

Garlinghouse believes the answer as Treasury Secretary Steven Mnuchin says is the

“regulatory clarity.”

Facebook has laid out in its white paper that it will be regulated out of Switzerland because Garlinghouse says there’s regulatory clarity.

In the US, he says, the same thing can happen around blockchain as with Internet in the late 90s. Though there are areas where there’s no certainty, the core ones are around know-your-customer (KYC) and anti-money laundering (AML).

“There has to be a level playing field both for new entrants as well as legacy entrants.”

 

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