Ripple CEO, Brad Garlinghouse, explained how there should be a level playing field when it comes to cryptos, adding that Secretary Mnuchin was right with his points during the hearing.
Garlinghouse spoke to CNBC and gave his views on how Libra has helped the cryptocurrency ecosystem gain more traction by trying to fast-forward discussions and by extension, regulations.
“I think there’s a little bit of, perhaps, arrogance and maybe Silicon Valley arrogance, with how Facebook approached this and just kind of somewhat brazenly running into some things without checking some of the boxes. I agree with the secretary Mnuchin that in order for these technologies to be used well and taken advantage of it has to be done in a regulatory compliant way we can’t expose more risk”, said Garlinghouse
Ripple has been focused on being regulatory-compliant since the start; be it Anti-Money Laundering [AML], Know-Your-Customer [KYC], or terrorism financing, said Garlinghouse. Speaking about a better way as to how Facebook should have gone about it, Garlinghouse said that Facebook didn’t take the time to address some of the reservations regulators had been talking about before the launch of the whitepaper.
Garlinghouse further pointed out that out of the 28 companies that are backing Libra, there wasn’t a single bank. Considering the potential impact Libra will have on so many sectors, David Marcus’ “this spells the end of Western Union” announcement was a call-to-action, the CEO said.
Touching on the regulatory requirement which is much-needed for the crypto-industry, Garlinghouse said that it was true about opportunities being washed away to other countries. He added that this situation is similar to the time when the U.S. took steps to regulate the internet in its nascent stage.
“I think there’s no question that there are elements that are relevant to US national policy here. Technologies like Bitcoin are really controlled by Chinese miners, technologies like ether are controlled by Chinese miners; for Ripple, it’s been that we develop on top of an ecosystem called, the XRP ledger, which is decentralized and open and really much more of a democracy in terms of how it works as compared with those technologies.”