Ripple CEO Says Troubling Things About Facebook Libra
Today, I have 5 interesting pieces of news to share with you. Let me give you a glance at what they are. First up, it looks like Brad Garlinghouse, Ripple’s CEO believes that Ripple and XRP are solving a $20 trillion dollar problem as banks do not like SWIFT. Next up, the Executives at Bitwise Asset Management seem to be pretty optimistic about its Bitcoin ETF approval from the SEC. Third up, Brad Garlinghouse weighs in on his thoughts on the Libra Token. He believes that Facebook will fail to launch its Libra digital currency before 2023. Next, the EU Finance Commissioner vows new rules on crypto which also include rules for the LIbra stablecoin, And finally, some more news on regulation, Hong Kong securities watchdog issues rules on funds investing in Crypto.
The Market Today
After a brief recovery yesterday, it looks like today’s market is correcting itself with many losses on the board. Bitcoin is currently dropping by 1.62%, standing at $8,147. ETH and XRP are also losing their value, falling 1.98% and 2.6% respectively.
Ripple and XRP are beating SWIFT in the banking industry
According to an article on the Daily Hodl, Ripple CEO Brad Garlinghouse is currently pushing back against the SWIFT, the well-known international payments network that has over 11,000 banks and financial institutions. It looks like, although SWIFT is making an effort to improve their settlement times and accessibility to its global messaging system, the banks aren’t really liking it.
Meanwhile, the Ripple, a real-time gross settlement system, is currently building out a financial network with more than 200 participants. While the number seems small in comparison to SWIFT’s banking network, Ripple is growing fast. Garlinghouse stated,
“We have been so fortunate through a little bit of luck and a little bit of skill that we find ourselves with a lot of momentum in, I think, really solving a problem using these technologies at scale.”
But when it came to the cryptocurrency industry at large, Garlinghouse also had a few things to weigh in.
“I think 99.9% of all crypto trading today is just speculation. It’s actually some amazing stats. About $40-50 billion a day is trading in crypto. That is a very liquid market.”
Garlinghouse highlighted that the value of these cryptocurrencies is really dependent on their utility in the real world.
“We are using XRP to help banks, to help regulated financial institutions facilitate cross-border transactions. There’s other companies out in the XRP world doing other things ranging from micro-payments to identity management, other things using that open-source technology. But Ripple’s very focused on using it for payments.”
Bitwise is closer than ever to Bitcoin ETF
According to Cointelegraph, Matt Hougan, the managing director and global head of research at Bitwise, believes that the company is closer than ever to a gaining a YES from the SEC for their Bitcoin ETF. For years, different entities have tried to gain approval from the SEC. However, it’s always been a no. Despite previous results, Matt Hougan stated,
“We’re closer than we’ve ever been before to getting a Bitcoin ETF approved. Sometime before Monday, the SEC has to give its decision: yes or no. They have no more ways to postpone it at this point.
We will hear clearly between now and Monday what they think. Two years ago, there were no regulated, insured custodians in the Bitcoin market. Today,…there are big names like Fidelity and Coinbase [with] hundreds of millions of dollars of insurance from firms like Lloyd’s of London.
He also added that now, six of the ten major cryptocurrency exchanges are now regulated by the New York Department of State and have market surveillance technologies in place. Furthermore, he argued that today’s crypto market sees over $200 million, with regulated Bitcoin futures traded every day. The executive then concluded that an ETF would enable financial advisors to bring Bitcoin to their clients easily “instead of them going rogue”.
Brad Garlinghouse: Libra will not launch before 2023
If you’re interested to see how Facebook’s Libra token turns out, then have a listen to this. Brad Garlinghouse shares his thoughts on the token and believes that it won’t be launching the Libra token before 2023. Garlinghouse mentioned in an interview with Fortune that regulatory pushback would only continue to plague the project. In his words:
“I would bet that Libra… let’s say, by the end of 2022, I think Libra will not have launched.”
Garlinghouse also noted the regulatory concerns that governments have raised around Libra, is a big factor that will continue to push the cryptocurrency token behind its launch date. Garlinghouse added,
“I think it would have been better received if Facebook had not been the point of the arrow.”
EU’s commissioner wants to create new regulations for crypto
Valdis Dombrovskis, the European Union’s financial services commissioner, intended to form a new regulatory framework for digital assets, particularly for Facebook’s Libra stablecoin. If you guys haven’t heard about Dombrovskis, he was the former Latvian prime minister, the vice president of the European Commission for the euro and social dialogue since 2014. He joined the European Commission from 2014 and was in charge of financial stability, financial services, and capital markets within the EU. Dombrovskis mentioned in a confirmation hearing that
“Europe needs a common approach on crypto-assets such as Libra. I intend to propose new legislation on this.”
His comments come regarding the increasing level of scrutiny by the European Commission over Facebook’s Libra cryptocurrency initiative.
The SFC issued regulations for virtual assets managers
According to a report on Coindesk, Hong Kong’s Securities and Futures Commission (SFC) has issued regulations for fund managers that are investing in “virtual assets”. The 37-page regulation defines virtual assets as
“digital representations of value which may be in the form of digital tokens”.
The definition also includes other virtual commodities, crypto assets or other assets of essentially the same nature. According to the SFC regulation, the virtual asset manager must appoint a third-party custodian, the assets of the fund and private property of the manager must be independent. Fiat currency must also be kept separate at a licensed Hong Kong financial institution or in a jurisdiction approved by the SFC. When it comes to transactions, fund managers are required to conduct extensive due diligence on crypto exchanges before using any virtual asset trading platform.
And that’s it, guys! What are your thoughts on everything?
Will Ripple and their XRP token can one day take over SWIFT and their legacy banking system?
Do you think the SEC officers approve Bitwise’s Bitcoin ETF?
Do you think Brad GArlinghouse is right? That Libra won’t be able to launch before 2023?
And do you think further regulations for the crypto industry is a good idea?
Please leave a comment right below to let me know what you guys are thinking.
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Disclaimer: Cryptopig content is written by a team of blockchain passionate people. We are not registered as investment advisors. Don’t take the information in this post as investment advice and make sure you do your own research before investing. Cryptocurrencies are a very risky investment, never invest more money than you can afford to lose.