Ripple, a US-based technology company and blockchain payment giant, has recently written an open letter to the US government, in the wake of fresh hearing regarding cryptocurrency regulations this week.
As blockchain technology and the crypto market grows globally, with events like Facebook launching its new stablecoin, the States still hold mixed notions about them. While countries like Japan and Switzerland accept the cryptosphere with open arms; the US, Britain, and France remain skeptical in their approach. China, too, has a harsh ban imposed on them and India is most probably going to follow the lead. Under such conditions, the move taken by Ripple is not very surprising.
Painting With a Broad Brush
The letter addressed the Congress and requested it not to ‘paint with a broad brush’; that is not to count responsible blockchain institutions along with the discredited ones:
“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.”
Dismissing the huge authority of banks over issuing currency and framing monetary policies according to the global economic standards, the letter argued the case of blockchain-based companies, in line with regulated financial institutions and their role in making financial dealings more efficient and easier. The letter emphasized that digital currencies were complementary to existing ones and not a ‘replacement’.
Further asserting the future role of cryptocurrencies in the creation of a flourishing economy, the letter pleaded with the government to create a regulation which ‘does not disadvantage U.S. companies using these technologies to innovate responsibly’ and which ‘classifies digital currencies in a way that recognizes their fundamental differences’.
The letter was signed by Brad Garlinghouse, CEO of Ripple and its Executive Chairman and co-founder, Chris Larsen. The negative stance on cryptocurrencies taken by countries, though criticized, is still alarming.