In the letter, Brad Garlinghouse and Chris Larsen broached the uncertainty facing digital currencies following Facebook’s brawl with the lawmakers. The spat has invited comments from the oval office, with President Trump tweeting that the token “will have little standing or dependability.”
It is expected that most US lawmakers will always be bitter no coiners. The political class derives their superiority from the powers of the state. The power of the USD gives the state its mandate. Facebook’s Libra has however met resistance from both the US legislature and a large part of the cryptocurrency community. In what seems like a bid to distance Ripple from Libra’s woes, the Ripple executives, have written an open letter to the US congress.
The Ripple duo in their message, first asks congress not to paint all crypto with a broad brush. They then go on to assert that they have been responsible for blockchain technology innovators, working under both the US and international law. The writers then pay homage to central banks, recognizing the critical role that they play in the issuing of fiat currencies. They additionally identify the central bank’s unique role in setting up monetary policies for the global economy.
XRP Complements the USD
In their open letter, the two figureheads said:
“For centuries, governments have been well suited for the job because paramount to the acceptance of any currency is trust. Companies like ours in the United States, and others abroad, employ these innovations in partnership with regulated financial institutions to enable the world to move money across borders like it already moves information—efficiently, reliably, inexpensively. In our view, digital currencies have the opportunity to complement existing currencies like the US dollar—not replace them.”
The Ripple executives consequently ask congress to adopt blockchain and crypto for their benefit. They cite the technology’s potential as economic growth stimulators and tools of financial inclusion. They additionally ask the US to support crypto regulation without killing US blockchain startups working as per the law.
The executives further point out that the legislature should classify cryptocurrencies by their differences. The US Securities and Exchanges Commission (SEC) has classified most crypto as securities or investment contracts. This has not gone down well with most blockchain-based startups, with startups such as KIK based in Canada launching a lawsuit against the SEC. The SEC has charged KIK for breaking the securities law after it’s close to $100 million worth ICO in 2017.
Ripple CEO: “Facebook Is Presumptuous.”
As it is, Ripple has found a ready market among banks looking for a competitive edge and lowered cost of operations. This is especially so in the area of expensive international transactions. The cryptocurrency-based payments firm has from its inception embraced governments and their central banks as well as their monetary policies.
This has raised much ire in the crypto-verse because Bitcoin was built to challenge these traditional notions of finance. It has, however, attracted an investor segment charmed by the thought of holding an asset that could eventually be massively adopted by the global banking system.
In an interview, Garlinghouse has labeled the Facebook token as “a little presumptuous” and arrogant too. He decried Facebook’s attempts at creating a new currency through Libra. He said that most of the headwinds the social media giant was facing, over the project were due to this obstacle.
Garlinghouse in the interview says that if Facebook has paid attention to regulators’ concerns before announcing its whitepaper, it would be in calmer waters. He, besides, added that Facebook’s war with regulators was going to get genuine real-world solving crypto startups in the crossfire.