The initial premise behind the creation of cryptocurrency was to replace fiat currencies with an easier to use and more accessible means of currency which is digital assets. Cryptocurrencies are easier to manage and required less complex systems for their use as they do away with the need for third party bodies such as banks.
Although cryptocurrency trading has been a business for years now, governments and regulators did not see digital assets as a real threat to traditional financial systems. Facebook’s announcement of project Libra tipped the scales and the United States government and regulators have been seen taking a much more defined defensive stance against cryptocurrency. Libra promises to be a 1:1 replacement for fiat currencies such as the US dollar and this has caused concerned parties to react negatively towards Libra and cryptocurrency in general.
Garlinghouse sides with regulators
In the midst of all the battling between authorities and the crypto industry, Ripple has come out and sided with regulatory authorities. The company, through its CEO, made comments describing the US dollar as perfectly suitable and saying that there is no need for a new currency to replace it. The company’s CEO went on to express negative comments about Bitcoin and Ethereum as he attempts to distance his company from other crypto players and paint the competition in a bad light.
Ripple CEO, Brad Garlinghouse, made it a point to distance his company from the rest of the players in the crypto industry during a recent conversation with Bloomberg TV. The CEO presented Bitcoin, Ethereum and Libra in a negative way as he sought to shift attention away from Ripple’s XRP token. The comments may also have been aimed towards pushing more traders to buy Ripple (XRP) instead of the other digital assets on the market.
During the conversation, Garlinghouse describes Facebook’s project as ambitious but arrogant for trying to be a replacement for fiat currency. The CEO expressed worry that other “legitimate” crypto projects will be caught in the crossfire as the United States government seeks to fight Libra.
Garlinghouse made it clear that Ripple is willing to cooperate with regulators in the United States and become compliant will all the regulations imposed. The CEO went on to talk about how Bitcoin and Ethereum are not set up to work with traditional financial institutions. He says that Ripple is in a position to work with banks and regulators unlike Bitcoin and Ethereum which are controlled by Chinese miners. Garlinghouse roped in Bitcoin and Ethereum although these two leading cryptocurrencies were not part of the conversation being held.
The comments made by Garlinghouse may be damaging to the crypto industry as a whole. Ripple’s CEO inadvertently added more fuel to the already raging fire that is the struggle between regulators and the crypto industry. His comments may have been meant to protect his own brand but in so doing, he has placed the entire industry in disrepute. Crypto enthusiasts and other stakeholders will most likely take his comments with disdain and Garlinghouse’s plan may backfire.