Ripple takes fright at Congressional pushback on digital currencies

Ripple takes fright at Congressional pushback on digital currencies

In the face of a Congressional onslaught against facebook and its putative digital currency Libra, Ripple chiefs Brad Garlinghouse and Chris Larsen have penned an open letter to lawmakers urging them not to paint all fiat alternatives with the same brush.

Democrats on the House Financial Services Committee in the US have demanded an immediate moratorium on the implementation of Facebook’s proposed cryptocurrency and digital wallet, citing the social media giant's recent travails over privacy issues as a glaring threat to the functioning of the world economy.

This has been followed by a full-blown Twitter rant from Donald Trump, who lambasted Facebook and digital currencies such as bitcoin for having the temerity to undermine the standing of the US dollar.

Ripple has clearly been unsettled by the controversy, issuing a plea for policy makers to reserve their judgement before rushing out legislative restrictions on the industry.

"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," write Garlinghouse and Larsen. "For centuries, governments have been well suited for the job because paramount to the acceptance of any currency is trust. In our view, digital currencies have the opportunity to complement existing currencies like the U.S. dollar—not replace them."

The pair cite the prospects for innovation, financial inclusion and economic growth engendered by digital assets, measuring the impact as on the same scale as the Internet.

"We urge you to support regulation that does not disadvantage US 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," they write. "Without regulatory clarity, we risk pushing the innovation, tax revenue and jobs that these new technologies create overseas."

Comments: (1)

Ketharaman Swaminathan
Ketharaman Swaminathan - GTM360 Marketing Solutions - Pune 30 July, 2019, 16:43Be the first to give this comment the thumbs up 0 likes

Out of the five largest economies in the world, China and India have already made their negative stance about cryptocurrencies clear. The USA is doing so now. Germany has been silent so far. That leaves Japan, which has been positive. So "action could shift overseas" threat could only mean Japan.