The well-known blockchain payment network Ripple recently took part in signing an open letter to United States regulators. Specifically, this comes ahead of a number of new hearings on cryptocurrency regulations.
The letter comes before a number of important crypto hearings
This letter was sent on July 28th, before a series of cryptocurrency regulation hearings set to take place this week. It is widely thought that this comes as part of a wider measure to urge leniency from Washington ahead of discussions on Facebook’s Libra cryptocurrency.
The open letter, aptly named ”Our Open Letter to Congress”, is signed by the CEO of Ripple, Brad Garlinghouse, and Ripple’s Executive Chairman and Co-founder, Chris Larsen. The letter urges US regulators not to ”paint us [crypto companies] with a broad brush”.
Furthermore, the letter goes on to note that ”many” cryptocurrency and blockchain industry actors are trying hard to follow applicable regulations. As such, the letter argues that US regulators should show some measure of tolerance when regulating the sector.
”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.”
Ripple is, as many may know, perhaps best known for the company’s altcoin, XRP. XRP is broadly put to use by Ripple as the Ripple payment network’s native token.
Garlinghouse shows appreciation for central banks
Perhaps even more interestingly, Ripple’s payment network has seen significant interest from institutional banks. Institutional actors are particularly keen on decreasing the costs of global payment transactions.
Nevertheless, this institutional interest has not seen Ripple immune from scrutinization. Rather, Ripple has been engaged in a number of cryptocurrency controversies over the past few years.
These have mainly related to questions over the connection between Ripple and the XRP token, as well as criticism aimed at the networks decentralization – or, rather, supposed lack of decentralization.
With that said, Garlinghouse’s letter touches on the concept of central banks. Although many cryptocurrencies, including Bitcoin, were specifically developed in order to rid the world of central banks, Garlinghouse actually shared some praise for governmental monetary policy.
”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. For centuries, governments have been well suited for the job because paramount to the acceptance of any currency is trust.”
Rasmus Pihl is a writer for Toshi Times by day and an avid follower of the blockchain industry by night. Rasmus holds a Bachelor’s Degree in Marketing from the Gothenburg School of Business, Economics, and Law and runs a Swedish marketing consulting firm. Moreover, when he isn’t writing for Toshi Times, traveling, working or changing the world in some other capacity, Rasmus is more than likely caught up in postgraduate studies.