According to reports, Brad Garlinghouse, who serves as the chief executive officer of Ripple, has stated that the scrutiny Facebook has invited (due to its Libra initiative) is of its own making. Since the social media powerhouse revealed plans of its cryptographic project to the public, regulators and policymakers have grilled the corporation in all angles.
Now Garlinghouse is saying no one is to blame for Facebook’s current predicament. He believes the situation is of Facebook’s own making.
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Garlinghouse: Facebook May Have Gone Too far by Revealing Libra Plans
While speaking on Bloomberg TV, the Ripple chief suggested that Facebook might have gone too far when it decided to state in its white paper, its plans for a native currency. In his words:
“I think Facebook is a bit, more than ambitious by following this part. Maybe they are arrogant to take the approach of announcing that they are going to create a native coin in their white paper.”
Garlinghouse also argued that Facebook’s decision to embark on the development of a cryptocurrency may actually be unnecessary. The Ripple chief added that the “USD works well enough’ and the world doesn’t really need a new currency. However, Garlinghouse gave an exception. He goes on to cite the case of emerging currencies like the Argentinian peso which has excessively lost value recently.
What are the Chances That Facebook’s Libra is a Bad Sign for Crypto?
During the interview on Bloomberg TV, Garlinghouse showed concerns about Facebook. Claiming that the biggest social media platform hasn’t done enough to win the hearts of regulators and policymakers. According to Garlinghouse, Facebook may have failed to adequately do the groundwork required to meet the anti-money laundering and terrorist financing regulations.
In this respect, Garlinghouse warned that the grilling that Facebook has received regarding its Libra project is having a negative impact on legitimate cryptographic projects. For example, the Ripple chief cited how President Donald Trump criticized Bitcoin earlier in July month as a Libra-associated pushback towards the crypto space. He believes it’s the after effects of Libra that’s making regulators stricter on BTC and altcoins.
Libra Doesn’t Threaten Ripple’s XRP
In the same interview with Bloomberg TV, Garlinghouse denied reports that Libra could directly be a threat to Ripple’s XRP (if it succeeds in coming to life). According to Garlinghouse, with XRP, Ripple is targeting a different market than that of Facebook. With the former directly focused on institutions and the latter has its attention on end-consumers. So the objectives of both projects are completely different.
Earlier in the week Ripple reportedly wrote an open letter to the U.S congress asking the lawmakers not to stereotype the Blockchain and digital asset industry because of Libra. The network also pleaded with the national assembly to provide legislation that will encourage and support innovation instead of implementing laws to kill the technology.
Fears of more stifling crypto regulations have emerged after congressional hearings with Facebook’s representatives began earlier in the month. During these hearings, a huge number of U.S lawmakers have expressed their reservations regarding cryptos in general. Hence, there Libra may actually be a threat to the industry. For now, we have to wait and see how the story unfolds. We cannot be certain about the effect of Facebook’s cryptographic project on the crypto sector if it passes the rigorous screening and launches.
Brian Lubin is a Crypto News Reporter for Smartereum. He's well-known for his reports on the crypto markets.