Gemini exchange co-founders Tyler and Cameron Winklevoss have advised Facebook CEO Mark Zuckerberg to work with regulators for the Libra cryptocurrency.
Positive sentiment for Libra
Former Harvard friends of Zuckerberg, the Winklevoss twins have sued and won a case against the Facebook CEO for stealing their idea of a social network. However, the twins have a very positive outlook on digital currencies, specially Libra.
In an interview with CNBC, Tyler said that Libra is “very positive for crypto, a company the stature of Facebook talking about cryptocurrencies demystifies the word and makes people feel a lot more comfortable.” The twins also reportedly had discussions with Facebook before Libra was announced. They are also expecting other tech giants to jump in the cryptocurrency trend. Tyler noted, “Our prediction is every FANG company will have some sort of cryptocurrency project within the next two years.”
Note that Tyler and Cameron were early Bitcoin investors and have earned a big chunk of their fortune due to digital currencies. The brothers have also launched Gemini Dollar (GUSD), a stablecoin pegged 1:1 to the US dollar. Facebook’s Libra is also a stablecoin.
Friendly advice for Zuckerberg
Facebook’s plan to launch Libra has raised eyebrows in Washington. Mark and his team have been asked to present themselves for two high-profile hearings next week. When asked what advice the brothers would want to give the Facebook CEO, they talked about working with regulators.
Tyler noted that it all boils down to cooperation with the regulators and lawmakers. He advised Mark to “talk with them.” He said that people like them went through the front door and helped in educating the regulators about blockchain and digital currencies. They tried to ensure that the regulation does not stifle innovation and is created in a thoughtful manner. He noted that they struck the right balance with New York.
It is unclear whether the Winklevosses will be using Libra or allow it to trade on their exchange. Cameron spoke cryptically, “We’ll keep evaluating, but at Gemini, we ask for permission, not forgiveness, and that has really been our ethos since day one.”
It is also important to note that some analysts have pointed out the striking similarities between the Gemini Dollar and Libra. Tyler noted that GUSD is a one-to-one peg with the USD while Libra is tied to a basket of assets. He also said that a Bitcoin-Libra pairing or a Libra-GUSD pairing could be quite interesting.