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July 17, 2019

Ripple CEO Brad Garlinghouse Says Payments Innovation Needs Regulation – But Doesn’t Need Facebook

By Daily Hodl Staff

Ripple CEO Brad Garlinghouse is sharing his thoughts about Libra, regulators and the future of the new digital economy as policymakers and regulators enter a new phase: enduring the prospect of big tech entering the financial services industry.

Ripple has been in the cryptocurrency space since 2012, working alongside banks and regulators to revamp international cross-border payments by using digital ledger technology.

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Facebook is a newcomer to the world of digital assets, unveiling the whitepaper for its new currency Libra last month and announcing a consortium of companies to help the tech giant establish a payments platform that can tap into its existing userbase of 2.5 billion users. The 30-day old announcement has already triggered two congressional hearings.

Designed to ‘revolutionize the global financial system’, Facebook’s payments platform has left governments gasping for air, wondering if the social network’s ultimate goal is currency domination, rivaling the US dollar and fiat currencies worldwide.

According to Garlinghouse, the open dialogue has revealed that the future of money and payments is shifting.

Says Garlinghouse,

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“I’m heartened by the (largely) thoughtful dialogue from this week’s congressional hearings on Libra. Committee members are supportive of blockchain and payments innovation in the U.S., but skeptical that Facebook is the right steward given the history of broken trust.

This debate is healthy and necessary for the continued maturation of this industry. We need to ask and answer the tough questions, ensure our systems are battle-tested, and have the proper oversight and regulations in place to protect consumers.

To paraphrase Congressman Patrick McHenry: ‘Whether Facebook is involved or not, change is here. Digital currencies exist. Blockchain technology is real.’

‘So the question then becomes – what are American policymakers going to do to meet the challenges and the opportunities of this new world of innovation?'”

Garlinghouse also responded to President Trump’s recent rant against Bitcoin and Libra last week, emphasizing the need for politicians and regulators to do their diligence and realize digital assets have come a long way since the days of Silk Road.

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