Ripple’s Chief Voices Concerns Over Libra
In a conversation with Fortune, Brad Garlinghouse, the CEO of Ripple, expressed his unease regarding impending stricter regulatory measures that could arise due to Facebook’s yet-to-launch Libra stablecoin. Garlinghouse’s concern? That Ripple’s operations don’t get tossed into a regulatory blender with everyone else in the crypto world.
Crossfire or Clarity?
Garlinghouse aptly stated, “You just want to make sure that you don’t get caught in the crossfire.” His goal is clear: navigating the regulatory landscape without being unfairly grouped with other digital currencies that may not operate under the same principles. After all, it’s not a one-size-fits-all scenario when it comes to cryptocurrency regulations.
The Ripple Effect of Libra
Interestingly, Garlinghouse also noted that the turbulent waters stirred by Libra brought unexpected benefits to Ripple. He shared insights from a Fortune Brainstorm Finance conference in June, suggesting that Facebook’s foray into crypto has helped legitimize the entire industry. Interestingly, this legitimization has sparked a record number of financial institutions eager to utilize Ripple’s digital currency, XRP, for cross-border transactions. Talk about turning chaos into opportunity!
Bridging the Gap: XRP vs. Bitcoin
At the same conference, Garlinghouse shed light on the ongoing debate regarding XRP and Bitcoin. He emphasized that these two titans of cryptocurrency are not in direct competition. According to him, Bitcoin serves as a store of value—often referred to as digital gold—while XRP plays a crucial role as a bridge currency. This means XRP facilitates efficient transitions between fiat currencies, making it indispensable for digital transactions.
Calls for Consistency and Collaboration
The cryptocurrency realm is not just buzzing about new regulations but also about the need for consistency across the industry. Jenny Shaver, COO at Salt, a crypto loans firm, highlighted this need for coherence during the tumultuous Libra hearings. She stated, “The industry has been lacking a consistent set of rules to abide by, and for the long-term development of the industry, we need to shape that structure with regulators.” Shaver’s call to action emphasizes the urgency for the crypto community to rally behind strategic lobbying efforts and education initiatives to enhance communication with regulators.
