According to him, the overwhelming publicity that Libra coin has acquired is a good indicator of the brighter future of finance besides widespread condemnation and strong rhetoric of Facebook. He noted:
“I think on the most macro level, it’s been good for the world because it’s brought a lot of attention on a set of technologies that really can’t benefit mainstream banking, mainstream consumer experiences around banking. I think there’s a little bit of, perhaps, arrogance – maybe Silicon Valley arrogance – with how Facebook approached this, and just somewhat brazenly running into some things without checking some of the boxes.”
The Risks of Unregulated Digital Currencies
The CEO echoed the sentiments of Steven Mnuchin, Treasury Secretary, who has issued a warning regarding the latest digital currency such as Libra and the risks associated with unregulated digital currencies.
“In order for these technologies to be used well and to be taken advantage of, it has to be done in a regulatory, compliant way. We can’t expose more risk – whether it’s terrorism financing, whether it’s money laundering. These are a thing that, from its core, Ripple has really been focused on making sure we’re partnering with the existing system.”
“Silicon Valley Arrogance”
When questioned, why he insisted that “Silicon Vallery arrogance” is at play, Garlinghouse replied:
“I think the conversation with regulators for Facebook started some time ago, and I think they had heard loud and clear some of these reservations, and I don’t think they took the time to address some of them.”
The CEO also shared his thought on the fact that Facebook`s Libra Association, a consortium of presently 28 firms that will spearhead the digital currency, doesn’t include banks. By ignoring incorporate legacy players into the deal, Facebook intentionally jeopardized the party. “There is a huge opportunity to change the way the world financial systems work that is very beneficial to consumers, businesses, etc. But again, it’s not competing with the banks”, added he.
The End of Western Union
At the time of announcing Libra, David Marcus came out and said that “this spells the end of Western Union”. That was a huge call-to-action to the banks around the world that had been watching big tech players and earlier were fearful to come into this space.
This information comes barely a month after Brad attempted to dismiss all the jitters surrounding Libra coin including its future potential. On his defense, he insisted that Facebook`s Libra triggers more banks to opt using his software and related XRP tokens instead of listening to the noise.