It has been two weeks since the US congressional hearing regarding Facebook’s new crypto project called Libra. Facebook faces heavy scrutiny from the US lawmakers and it has been a matter of discussion since then. Due to the negative feedback of the project from the lawmakers, the entirety of the crypto market has faced bearish sentiments – especially the poster boy of the crypto world, Bitcoin. The crypto market has not been the same since the hearing, and everybody is blaming Facebook for this. Many notable people had voiced their opinions regarding this situation, and Brad Garlinghouse, CEO of Ripple was one of them.
Cryptocurrency Caught in the Crossfire Due to Libra, Claims Ripple CEO
Brad Garlinghouse, in an interview with Bloomberg TV had a piece of his mind to give to Facebook. He first of all stated that the heavy criticism and scrutiny that Facebook faced is its own fault and not the nature of the market. Garlinghouse also told that Facebook announcing a crypto of its own was already a step too far outside its territory. He expressed his discomfort using these words :
“I think there is a little bit, maybe, more than just ambitious, maybe arrogant to take the approach of ‘hey, we are going to build a, the white paper articulates, a new currency.”
Garlinghouse also speculated about things and voiced his opinions about some topics. According to him, Facebook’s Libra was not required in the market and the US Dollar was already doing very good in the market. There was no need of any new fiat currency in the market, according to Garlinghouse.
Garlinghouse also said that Facebook’s project wouldn’t have gathered praise in the hearing anyways. This is because the main point of deflection that they used during the hearing, about pleasing the regulators wasn’t done and not much effort was taken to do so. Also, they hadn’t put any time and money into setting up a foundation for meeting standards of anti-money laundering and anti-terrorism financing regulations.
Also, Garlinghouse said that Libra has had and can have a negative effect on other cryptocurrencies as well. This is what Garlinghouse had to say in the matter :
“The danger that is happening right now is that legitimate projects working on taking advantage of crypto to solve real problems get caught in the crossfire a little bit. ‘Cause you are seeing even the president came out and tweeted ‘I don’t like cryptocurrencies.”
Garlinghouse suggested that Libra’s unnecessary attention put Bitcoin in a negative light and Donald Trump’s was compelled to make a tweet about cryptocurrency in a bad light. Also, Garlinghouse made clear that it doesn’t feel that Facebook is a competitor to it as it doesn’t come in the line of field of Ripple.