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Ripple CEO Praises Central Banks in US Congress Open Letter

Anja van Oosterhout | Jul 29, 2019 | 08:00

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Ripple, the entity notionally behind cryptocurrency XRP, has asked US lawmakers for more advantageous regulation, saying it is “serving the greater good.”

Ripple Wants To ‘Serve Greater Good’

In an open letter to Congress ahead of a fresh hearing on crypto and blockchain policy July 30, CEO Brad Garlinghouse requested politicians not apply a one-size-fits-all approach to the industry.

He summarized,

We urge you to support regulation that does not disadvantage U.S. companies using these technologies to innovate responsibly, and classifies digital currencies in a way that recognizes their fundamental differences—not painting them with a broad brush

The move comes after a month of debate at Washington over how to treat cryptocurrency, with Congressional sessions focusing on Facebook’s Libra digital currency in particular. 

As Bitcoinist reported, comments spilled over into Bitcoin and related tokens, with some lawmakers coming out highly critical of them, and others accepting their presence is beyond anyone’s control. 

Ripple’s Garlinghouse had voiced concerns about Libra late last week, striking a similar tone to his open letter. Now, however, an element of self-promotional also came to the fore.

“Many in the blockchain and digital currency industry are responsible actors. We are responsible to U.S. and international law. We are responsible to serving the greater good,” he continued.

Garlinghouse: Gov’t ‘Well Suited’ To Dictate Monetary Policy

A further surprise came in the form of Garlinghouse praising central banks and government-issued fiat currency, which will undoubtedly ruffle the feathers of supporters of decentralized cryptocurrencies such as Bitcoin 00.

He also complimented governments in general on their handling of monetary policy, arguing that trust was necessary for a currency to function. By contrast, Bitcoin’s entire existence is built on the premise that trust is no longer necessary – or desirable – when transacting value.

“We don’t take for granted the vital role of central banks in issuing currencies and setting monetary policy in concert with the complex dynamics of economies around the world,” he wrote. 

“For centuries, governments have been well suited for the job because paramount to the acceptance of any currency is trust.”

Ripple Passes Record $1B Sell-Off

Such controversial statements nonetheless remain in line with Ripple’s overall stance, executives previously sparking outrage when they claimed XRP was in fact more decentralized that Bitcoin. 

Those suspicions continue this month, as commentators note Ripple as a company sold more of its own XRP holdings in Q2 2019 than ever before. 

“Cumulatively, Ripple has sold $1.14 billion of XRP out of which 36% was sold to the exchanges,” Larry Cermak, head of research at cryptocurrency news outlet The Block, summarized linking to the publication’s investigation into Ripple’s habits. 

“Ripple sold $251.5M in XPR in Q2 2019, which is, by far, the highest quarterly sum that Ripple has ever sold.”

The sell-offs had already made the headlines before.

What do you think about Brad Garlinghouse’s comments and Ripple’s token dumps? Let us know in the comments below!

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