Since launch, Facebook’s Libra stablecoin has elicited mixed reactions. While some individuals have a negative outlook, others are bullish on the project. Brad Garlinghouse, Ripple’s CEO took time for an interview on July 23 to discuss how Libra would affect the crypto world.
According to him, Facebook’s plan is a little presumptuous. He noted that the firm had taken a bold ambitious effort. While this trait makes incredible entrepreneurs that think outside the box, Garlinghouse believes that Facebook is not only ambitious but also arrogant. He went on to explain that the social firm took an approach of building a new currency. As a result of launching Libra as a new currency, the project faced a lot of headwinds and turbulence.
Libra Endangers Legitimate Projects in the Crypto Space
Per Garlinghouse, Facebook had conversations with regulators before it announced Libra’s whitepaper. However, some regulators expressed concerns over the coin’s development. He believes that Facebook did not do enough to address these concerns. Garlinghouse added that financial regulation is important in all governments. As a result, watchdogs have to ensure that future projects adhere to KYC and AML policies.
Per Garlinghouse, failure to address the concerns of financial watchdogs endangers real projects in the crypto space.
Legitimate projects working on taking advantage of crypto to solve real problems get caught in the crossfire a little bit.
Libra Does not Threaten Ripple (XRP)
Responding to whether Libra success would reduce XRP’s opportunities, Garlinghouse said this would not be the case. According to him, Facebook is a consumer firm. Similarly, Libra aims to solve a consumer-oriented problem. On the other hand, XRP targets the institutional sector. He explained that the coin serves the purpose of connecting banks.
Garlinghouse went on to state that Ripple had one of its best weeks on the week of Libra’s announcement. Also, he claimed that Libra’s launch was a called action for banks. Seeing that David Marcus, the head of Calibra said Libra would be the end of Western Union, Garlinghouse believes its launch is an assault on banks.
This news comes as crypto experts continue airing their sentiments on Libra. Before Brad Garlinghouse, Andreas Antonopoulos commented on the project saying,
While Facebook’s Libra doesn’t compete against any open, public, permissionless, borderless, neutral, censorship-resistant blockchains, it *will* compete against both retail banks and central banks. This is going to be fun to watch.
— Andreas M. Antonopoulos (@aantonop) June 18, 2019
Do you think US regulators with give Facebook the green light to proceed with Libra’s development? Let us know in the comments below.
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