This week has seen a big step up in government and international bodies talking about crypto. From warnings against Facebooks Libra coin to bashing Bitcoin and endorsing the blockchain technology and cryptocurrencies which actually have actual use cases and real potential.
Here we are going to highlight the 3 main talking points from the past few days, Donald Trump and his tactical Twitter tirade against Bircoin and Libra, Steven Mnuchins (Secretary of the Treasury) speach on crypto and Ripple CEO Brad Garlinghouses response to both of these.
Regulation is coming, make no mistake about that. Do we need to pick a side?
- The XRP side with the best product, the real world utility and multiple use cases, the big partners and working tirelessly and relentlessly to try and help all regulatable cryptos become accepted by governments and regulators worldwide?
- Do we side with the anarchist and libertarian ideologies and hope that governments won’t be able to crush anybody not complying with the rules?
- Or do we choose to put our heads in the sand and assume that the Tether scandal will continue forever and that they can keep on pumping Bitcoin with fake stablecoins, an army of bots and money laundering tactics?
I think by now you know which side of the fence I am on (Disclaimer: I do hold some XRP but do not hold any Bitcoin)! But enough about my thoughts, let’s see what the experts have been saying…
Donald Trump, the United States Treasury, Ripple, XRP, Bitcoin and Facebooks Libra
Let’s start at the beginning then,
United States President Donald J. Trump denounces Bitcoin and Libra:
I am not a fan of Bitcoin and other Cryptocurrencies, which are not money, and whose value is highly volatile and based on thin air. Unregulated Crypto Assets can facilitate unlawful behavior, including drug trade and other illegal activity….
….Similarly, Facebook Libra’s “virtual currency” will have little standing or dependability. If Facebook and other companies want to become a bank, they must seek a new Banking Charter and become subject to all Banking Regulations, just like other Banks, both National…
…and International. We have only one real currency in the USA, and it is stronger than ever, both dependable and reliable. It is by far the most dominant currency anywhere in the World, and it will always stay that way. It is called the United States Dollar! – Donald J. Trump
U.S. Treasury secretary Steven Mnuchin slams Bitcoin and Libra:
As the president has said, Bitcoin is highly volatile and based on thin air…
We are concerned about the speculative nature of Bitcoin and will make sure that the U.S. financial system is protected from fraud…
This is indeed a national security issue… Cryptocurrencies such as bitcoin have been exploited to support billions of dollars of illicit activity like cyber crime, tax evasion, extortion, ransomware, illicit drugs, and human trafficking.
With regard to Facebook’s Libra, our overriding goal is to maintain the integrity of our financial system and protect it from abuse… could be misused by money launderers and terrorist financiers… – Steven Mnuchin
Ripple CEO Brad Garlinghouse backing regulation, XRP positioned for success:
Just watched @stevenmnuchin1’s press conference on regulating crypto and have personally spoken to him on this topic. I’ve also been ruminating on @realdonaldtrump’s tweets on crypto last week.
I agree that crypto isn’t likely to replace fiat currencies – I have been very vocal that crypto isn’t likely to disrupt the US dollar and other G20 currencies in my lifetime.
But as Mnuchin indicated, the entire crypto industry should not be painted with one broad brush – it has come a long way since the days of Silk Road. For the industry to succeed, we need to work with regulators and within policies. Full stop.
When I read the Libra whitepaper – outlining a goal to create a new fiat currency – it was clear to me that the effort should be held to the same standard as other regulated financial institutions.
XRP is uniquely equipped to solve a multi trillion dollar problem by offering a dramatically faster and cheaper bridge for cross border payments. @Ripple already works with regulators, banks and financial institutions (like @MoneyGram) to implement this around the world.
I hope there is no “ignoring, laughing or fighting” as it relates to regulation of crypto. If we want to maximize progress forward, it’s about working with the existing financial system – not against it.
If not, we risk squashing innovation here in the US, and letting foreign interests take control of this new sector of our global economy. – Brad Garlinghouse