Brad Garlinghouse on Asia: Business As Usual For Ripple Despite SEC’s XRP Lawsuit

According to Ripple Labs CEO Brad Garlinghouse, it’s business as usual for the blockchain company in Asia despite its issues with regulators in the U.S.

Asian Market Keeps XRP Afloat

The San-Francisco digital payments firm, which is in a legal tussle with the U.S Securities and Exchange Commission (SEC) over the classification of its XRP token, says the case hasn’t had much of an effect on its operations.

During a guest talk show with network news Reuters, Garlinghouse said that its Asia interests were still thriving despite the ongoing legal storm. To him, the clear regulatory signposts in the Asia-Pacific nations have made it easier for Ripple to model its digital products to the taste of regulators.

Talking down the impact of crypto exchanges delisting its digital currency in America, Garlinghouse said that XRP was traded in 200 exchanges worldwide, and only three or four exchanges ever listed the virtual currency in the United States. Garlinghouse explained,

“We have been able to continue to grow the business in Asia and Japan because we’ve had regulatory clarity in those markets.”

Garlinghouse and Ripple have witnessed some wins in the past months. Ripple had initially suffered a slump following the lawsuit in December but has since rallied, with the majority of the crypto market posting strong gains. It also announced a pilot for its central bank digital currencies (CBDCs) private ledger targeted at countries interested in digitizing their fiat currencies.

The CBDC Private Ledger is an offspring of its XRP Ledger (XRPL) technology and will run on the same blockchain the digital currency uses.

The private transactions logbook is created for large payments and will help central banks issue and maintain their digital currencies.

When the lawsuit was made public, large crypto houses like Coinbase and Kraken delisted the XRP cryptocurrency from their exchanges. But Asian exchanges continued to list the struggling crypto-asset.

Ripple has a good working relationship with APAC countries like Japan and Thailand, according to Garlinghouse. The cryptocurrency company is said to be in partnership with Japanese financial giant SBI Holdings. The Japanese powerhouse is already planning to leverage Ripple’s digital payments expertise to establish itself in the Asian continent.

Garlinghouse also spoke on the apparent lack of regulatory goalposts to guide corporate holdings of digital assets. To him, the SEC’s continued aggression will only end up stunting the growth of the crypto industry in the US.

Gensler Expected To Bring Regulatory Clarity

The Ripple case which has dragged on for months and may likely last longer, has seen crypto lawyers wade in on the discussion. Joseph Hall, a legal practitioner at David Polk’s law firm and former SEC commissioner, reportedly said the SEC was being biased in its suit against Ripple and its top executives.

Hall pointed out that Ethereum and Bitcoin sharing similar attributes with XRP, were confirmed as commodities by the SEC’s sister agency – the Commodity Futures Trading Commission (CFTC).

To him, XRP deserves the same treatment. Stating that the SEC took a long time before it made up its mind to file a case against XRP, Hall said it may not be a slam-dunk case.

At his confirmation ceremony in Congress, President Biden’s SEC Chair pick Gary Gensler promised to bring an end to the uncertainty surrounding cryptocurrencies in the United States.

Gensler is an MIT professor who teaches cryptocurrencies, blockchain, and public policy. He had previously served as the chairman of the Commodity Futures Trading Commission (CFTC). Gensler told Congress at his confirmation hearing,

“Bitcoin and other cryptocurrencies have brought new thinking to payments and financial inclusion, but they’ve also raised new issues of investor protection that we still need to attend to.”

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Author: Jimmy Aki

Ripple’s Trump Card in The SEC’s Lawsuit Against XRP is China

While Ripple CEO Brad Garlinghouse continues his broken record, XRP enthusiasts are left grasping at straws, and the increasing amount of tokens move to exchanges.

Ripple said on Monday that the Securities and Exchange Commission (SEC) is planning to file a lawsuit against the company over the alleged sale of unlicensed securities, XRP. According to Ripple CEO Brad Garlinghouse, the case will also be naming him and co-founder Chris Larsen as defendants.

Garlinghouse took to Twitter on Monday to share this update and yet again continued his broken record of the authorities favoring Bitcoin and Ether to the broad crypto market.

“Today, the SEC voted to attack crypto. Chairman Jay Clayton – in his final act – is picking winners and trying to limit US innovation in the crypto industry to BTC and ETH,” said Garlinghouse.

“The SEC – out of step with other G20 countries & the rest of the US govt – should not be able to cherry-pick what innovation looks like (especially when their decision directly benefits China),” he added. “Make no mistake. We are ready to fight and win – this battle is just beginning.”

Garlinghouse characterized this decision as parting shots by Trust administration officials and predicted that the incoming Biden administration might be more favorable to the industry. Meanwhile, Ripple is preparing to litigate, he said.

“I think we have to stand up for all of crypto—and not let the SEC bully the entire industry,” Garlinghouse told Fortune, adding, “We’re going to be on the right side of history.”

An “embarrassment” to the Crypto Industry

“We know crypto and blockchain technologies aren’t going anywhere,” said Garlinghouse on Twitter and added that Ripple would continue to use XRP “because it is the best digital asset for payments – speed, cost, scalability, and energy efficiency” and it is already traded on over 200 exchanges globally.

According to him, XRP “will continue to thrive.” However, that’s not what the crypto industry feels.

“XRP isn’t a cryptocurrency; it’s not meaningfully decentralized, it’s literally a token on a DB maintained by a single entity,” and is in no way comparable to Bitcoin, said Nic carter, founder of Coin Metrics.

XRP’s claimed and “only” use case as a bridge currency for remittances has been made redundant by stablecoins because “no one wants to use a volatile, illiquid, thinly traded asset as a bridge currency,” said Carter.

Calling it a “shallow fraud” and “embarrassment” to the crypto industry, Carter believes it is time to end this madness by making Ripple accountable.

Trying to Find the Silver Lining

“XRP is a fully functional currency that offers a better alternative to bitcoin,” is what Ripple says in its Wells Submission.

Throughout 2020, Ripple’s biggest argument for XRP not being security has been Bitcoin and Ether being Chinese-controlled, which the company says will mean “innovation in the cryptocurrency industry will be fully ceded to China.”

“Looks like the Ripple/XRP team is sinking to new levels of strangeness. They’re claiming that their shitcoin should not be called a security for *public policy reasons*,” commented Ethereum co-founder Vitalik Buterin on this China control.

XRP enthusiasts are now left grasping at straws. One Twitter user pointed out how the big tech giants; Amazon, Apple, Facebook, Google, Tesla, and all the big banks have been sued by the SEC as well, “One could say it’s an interesting path to follow. Every cloud has a silver lining,” he noted.

XRP is currently the biggest loser among the top 40 cryptos, down 18% while trading at $0.463.

In response to this report, not only the social volume for XRP “exploded, but” there has also been an increase in tokens moving to exchanges, per Santiment.

If the SEC sues Ripple, it will take time to conclude as it will involve years of debate between the company and the agency on XRP’s security nature.

In the immediate future, however, the bigger question is “if centralized exchanges delist XRP while the case is pending,” said Jake Chervinsky, General Counsel at Compound Finance.

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Author: AnTy

Tech Firms Have an ‘Obligation’ to Solve Societal Issues: Ripple CEO Criticizing Coinbase

Ripple CEO Brad Garlinghouse rejects the apolitical stance taken by Coinbase and has no plan to follow it.

Last month, Coinbase CEO Brian Armstrong wrote a blog post where talking politics is banned in the company. US-based cryptocurrency exchange’s policy to not “debate causes or political candidates internally” or engage with issues that aren’t related to its core mission crypto caused quite a stir.

Many of its employees (5% workforce) took the severance package offered to those wanting to quit the firm over its mission and left the company.

Twitter CEO Jack Dorsey opposed the decision at that time. Now, Garlinghouse has shared his displeasure while Ripple offers employees paid time off to vote and volunteer in the upcoming presidential election.

“The sad reality is — and I say this as a long-time veteran of Silicon Valley — some of these (societal) problems are, at a minimum, exacerbated by the tech platforms themselves,” Garlinghouse said.

As has been seen, the manipulation of elections and political discourse on the biggest online platforms like Facebook, Twitter, and YouTube.

Brad Garlinghouse also shared that Ripple is taking YouTube to court over Google’s video-sharing platform, failing to protect users from “giveaway” scams.

“We didn’t need to do that; it doesn’t help Ripple,” he said. “But what it highlights is that platforms need to take ownership of the problems they are contributing to.”

Garlinghouse’s comments on Coinbase’s mission came soon after he said the company, which has a $10 billion valuation, is considering relocating overseas with Japan, Singapore, Switzerland, the UK, and UAE potential candidates due to lack of regulatory clarity in the US regarding its digital asset XRP.

“Ripple was once a darling of Silicon Valley & raised tons of capital from US investors. It’s pretty shocking to see them consider fleeing the country now. This isn’t a move any company takes lightly. I wonder what this says about the state of their relationship with the SEC….” said Jake Chervinksy, General Counsel at Compound Fiance, about this development.

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Author: AnTy

Ripple Execs Meet With Central Bank Of Brazil Officials in ‘Closed to the Press’ Meeting

Ripple Inc.’s, Brad Garlinghouse held a ‘closed to the press’ meeting with Brazil’s Central Bank officials on May 30th to discuss “institutional matters” in the South American country. Top officials from both Ripple and the Central Bank of Brazil held the meeting at 1700 hrs to 1800 hrs. What could be the motive behind the closed-door meeting?

Ripple Executives meet with the Central Bank of Brazil Officials

According to the Agenda of Authorities of Banco Central do Brasil website, the schedule of Roberto Campos Neto, the central bank’s president, showed he met online with Ripple executives on Saturday evening last week. While major details on the meeting remain unrevealed to the media, the agenda only hinted at “institutional matters”.

Three Ripple executives and board members accompanied CEO at Ripple Inc., Garlinghouse – Ben Lawsky, Member of the Board of Directors of Ripple, Eric van Miltemburg, Senior Vice President, Global Operations, Ripple, Luiz Antonio Sacco, Vice President of Global Operations and General Director for Latin America at Ripple.

Brazil’s central bank was led by Roberto joined by João Manoel Pinho de Mello, the Financial System Organization and Resolution Director, and Otavio Ribeiro Damaso, Regulation Director.

Both, Ripple and the Central bank of Brazil officials have remained silent on the conference discussions. Could the bank be looking at a possible central bank digital currency (CBDC) or settlement platform?

Brazil’s QR based instantaneous payment system

The most sensible explanation for the meeting may be to discuss the QR-based payment system that the central bank is developing. PIX, the non-crypto payment platform will offer P2P ad B2B payment solutions within the country aiming to reduce the transaction costs and speed of transactions.

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Author: Lujan Odera

The ‘Amazon of Blockchain’ Will Take Off in the Next 2 Years: Ripple SVP Tells Zuckerberg

While Ripple CEO Brad Garlinghouse is talking about the wellbeing of the team being the company’s highest priority as such transitioning to remote work and the “unprecedented new reality,” Asheesh Birla, SVP of Product and Corporate Development at Ripple shared with Randi Zuckerberg that Ripple would be taking off in the next 2 years. She tweeted,

Zuckerberg had Birla, the former Vice President of Global Technology at Thomson Reuters on her show as a guest where he shared how the fintech startup is “revolutionizing” the way payment moves by using a digital asset, XRP to move money fast and at cheaper costs effectively across borders.

Ripple is basically “frictionless motion,” in making payments more effective that people don’t even know when using their iPhones and IP technology. “I’m excited that we’re seeing real world adoption and that the technology is really improving,” said Birla.

Ripple: “Amazon of Blockchain”

It was in 2013 that Birla joined Ripple, a year after it was co-founded by Chris Larsen and Jed McCaleb, who has also co-founded another cryptocurrency, Stellar, focused on payments.

“I made a smart decision to join a startup that was involved in the internet wave right out of college. I loved being involved in something that was creating something out of nothing and then Blockchain made me feel the same way.”

As for Ripple, he said, he has “found the Amazon of Blockchain with Ripple,” whose mission was to “efficiently and safely move money as quickly as information moves today.”

As other Ripple executives have repeatedly emphasized, Birla also stressed that the market needs those “solving real problems with blockchain.” One just needs to identify how their product is better by using the blockchain, a distributed ledger technology underpinning the cryptocurrencies, and “really focus on that.”

And the point of using blockchain is to remove the intermediary, either banks or other financial institutions, he said.

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Author: AnTy

CEO Brad Garlinghouse Compares Ripple To The Earliest Days of Amazon

2019 was “an incredible” year for Ripple, says CEO Brad Garlinghouse in an interview with Julia Chatterley of CNN. The year he said saw the shift from speculation that has “driven the crypto market” to a utility like solving problems.

In 2020, they are building the momentum which brings in more customers and more liquidity. This year will be pivotal because of the regulatory clarity which Garlinghouse said will help “catapult the whole industry.”

He talked about how in Davos during the World Economic Forum, he was meeting with regulators and banks and explained to them how crypto but specifically XRP can be used to solve a real problem without circumventing regulation or government.

Ripple is also in discussion with the regulators over the nature of XRP. He didn’t provide any details but said they’ll continue to engage with them and “had very constructive conversations with regulators here in the United States.”

Shifting the Focus to On-Demand Liquidity

Ripple’s focus is certainly on its On-Demand Liquidity Solution which Garlinghouse said processed $54 million using XRP from the US to Mexico in a week. This has been 7.5% of all US-Mexico flows, which has been a substantial increase from about 3% in December.

“Liquidity begets liquidity” and the more activity you see, the more follows. The largest digital asset exchange of Mexico, Bitso is using XRP through which “instead of being dependent upon the speculative trading of crypto,” it represents institutional flows.

And these $54 million flowing through Bitso is a big deal for their business which Ripple CEO said, “brings other players.”

However, it just one corridor. There is already “a lot of demand” and Ripple is “prioritizing new corridors,” so they’ll be expanding in other corridors while seeing the liquidity grow naturally.

But the regulatory clarity is of importance here. And that’s the reason India isn’t high on their list, he said. This is what Garlinghouse also shared at the Davos with the regulators that they are not circumventing KYC, customer check, or anti-money laundering checks which gets them “very comfortable very quickly.” Garlinghouse added,

“I think a lot of countries around the world see that this is a technical wave, this is a major step and they want to invest in it. They want to see companies continue to invest and I think that’s good for the economy.”

XRP or the Fed Coin?

The regulatory clarity has also been because of the central banks taking a step towards creating their own digital currencies.

This according to Garlinghouse is “healthy and constructive for the entire crypto community.” It makes sense because even at the Fed window, it isn’t giving a crate of dollars rather a digitized centralized ledger entry, so there isn’t any difference.

However, in most of Europe and the US, for the central bank to go directly to the customers and circumvent commercial banks “doesn’t make a lot of sense,” he explained.

So, could it mean Ripple will substitute XRP for a Fed coin one day? Garlinghouse is open to that but says there still be a cross-border settlement dynamic and it doesn’t “change the need for a cross-border neutral like an XRP which has been extremely efficient.”

This means, there won’t be “one winner in the crypto space,” rather “a lot of different participants solving different segments of problems.”

“There’s going to be other digital assets that increasingly have utility for customers and therefore drive velocity” and demand.

Is an IPO Really Coming?

Ripple is one of the most valued companies in the crypto space at $10 billion valuation but given that Garlinghouse talked about an IPO earlier this year, what could be the reason with Ripple already having a “very strong balance sheet,. Garlinghouse did try to deflect with,

“I don’t think I’ve said go public I think what I said was 2020 will likely have crypto kind of blockchain IPOs (…) I don’t think ripple will be the first but we certainly don’t to be the last so I kind of kept it open.”

However, he shared that IPO would mean more flexibility for the company which would give them the “strength to do new things,” and grow business like they did last year by adding 100 new employees while other companies in the space had layoffs.

The Shift from Amazon Books to Amazon

Gallinghouse also shared Ripple’s long term goal of becoming Amazon as he explained, “in the earliest days of Amazon it’s called the Amazon books. As a bookseller it competed with Barnes & Noble and with the hoarders.”

Ripple he said is viewed today as a cross-border payments company but sees themselves as a blockchain infrastructure company. Cross-border payments he said are just the first vertical and “we want to make sure we’re winning in cross-border payments before we do another vertical.”

In the next five years, Ripple will “continue to grow and take market share” and “we’re not just Amazon books but we are Amazon,” said Garlinghouse.

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Author: AnTy

CEO Brad Garlinghouse Says XRP Price Can’t Be Controlled By Ripple, Utility Will Dictate

Ripple’s CEO, Brad Garlinghouse, said in a CNN interview from January 5 that his company is not looking to get rid of its XRP cryptocurrency, even if it’s selling a lot of it.

He also talked about the relationship between Ripple and XRP, and how the company can’t control the coin’s price:

“Ripple can’t control the price of XRP any more than the whales can control the price of Bitcoin.”

Ripple Got Rid of More XRP Than Ever in 2019

Garlinghouse’s comments on Ripple not wanting to dump XRP are contradicting what happened with the company’s market in 2019. He said,

“Yes, Ripple owns a lot of XRP, we’re very interested in the success of XRP, but the accusations of us dumping, that’s not in our best interests to do that […]. We would never do that and in fact, we’ve taken steps to lock up most of the XRP we own in escrows so we can’t touch it.”

XRP Had Major Lows in December 2019

XRP had its worst lows over the last 2 years in December 2019, when it dropped under $0.29 and was trading at some point 96% below its $3.40 high of all time. In the last 24 hours, it had a 9% recovery and XRP/USD came across the $0.20 barrier. Garlinghouse firmly denied Ripple’s influence over the XRP price, in spite of the company’s token share.

Major XRP Buyers Would Have Restrictions

Garlinghouse continued the interview by saying Ripple would not have a positive response for large investors owning a lot of the XRP supply and said the company is an enduring major token holder that keeps on moving forward. When mentioning institutional investors, he had this to say:

“We don’t want some other party buying a whole lot of XRP and dumping it on the market, and so we would hypothetically have restrictions about what they could sell and how often, and usually those are based on volume in the market.”

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Author: Oana Ularu

Congressman Sherman To Chair Subcommittee For Investor Protection, Will Crypto Be Affected?

Brad Sherman, a US congressman and who is well known for his anti-crypto stance has been elected to chair a Subcommittee responsible for making decisions on entrepreneurship, investor protection, and capital markets. The announcement was made on December 5 by Maxine Waters, the chairwoman of the House Financial Services Committee.

The subcommittee will be headed by Sherman and will oversee major regulatory bodies of the United States including the Securities and Exchange Commission (SEC), the New York Stock Exchange (NYSE) and the Financial Industry Regulatory Authority (FINRA).

Sherman’s Service Record

Democratic member of the U.S. House of Representatives for 23 years and is well known for his reservations towards Bitcoin and cryptocurrency.

Warren Davidson who happens to be Sherman’s coworker on the Financial Service Committee believed that Sherman was quite conservative in his approach and does not like anything about cryptocurrencies, and if it would be up to him he might even ban the internet. He explained,

“In my view, [Sherman’s] goal is essentially to try to ban the internet. He’s like ‘we’re going to ban crypto, we need to ban crypto, the only reason to have any crypto asset is to launder money and evade taxes. Go back, rewind the tape. Every hearing that’s has been held on crypto, that’s Brad Sherman’s thoughts. He doesn’t like the “space.”

Sherman’s conservative thinking could prove to be another pushback for the US in the decentralized world

Sherman is quite conservative when it comes to finances and doesn’t believe in cryptocurrencies promising decentralized future and that taking away the power over finances from the government as a threat. He believes anything that challenges the US dollar’s sovereignty needs to be outright banned.

Recently in October Sherman was seen dissing cryptocurrencies, claiming it to be highly risky which might cost investors a ton of money as it is not protected by the government. He said,

“Cryptocurrency either doesn’t work, in which case investors lose a lot of money, or it does achieve its objectives perhaps and displaces the U.S. dollar or interferes with the U.S. dollar being virtually the sole reserve currency in the world.”

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Author: James W

Ripple CEO Highlights Real World XRP Uses Cases (MoneyGram), Asks Users to Look Beyond Skepticism

Brad Garlinghouse, the CEO of San Francisco-headquartered Ripple has responded to the growing criticism of XRP given the third-largest altcoin has failed to see a significant price rally in 2019 even when the market recorded double-digit growth. Many analysts can’t put their head around on how XRP has managed to remain as the third-largest cryptocurrency despite that.

Ripple and XRP have always made headlines for the wrong reasons, amid growing criticism on the control of Ripple on XRP’s circulation volume and growing demands for it to be categorized under security law, one thing that has got the Fintech firm moving forward is its strong social media fandom.

XRP proponents have never backed down from claiming that the altcoin is the best use case of the evolving tech and despite its diminishing price, its real-world use case for cross border remittance makes a better form of digital currency. Garlinghouse share similar thoughts as he pointed toward MoneyGram, the world’s leading cross-border payment and remittance service provider. MoneyGram started using RippleNet to make real-time cross-border settlement under 60 seconds. He wrote on Twitter,

“Many have doubted the benefits of #XRP, but you don’t have to take my word for it. The proof is in the pudding: @MoneyGram is experiencing real-time settlement (~60 seconds) in USD to Mexican pesos.”

Ripple realized the potential of the cross-border remittance service which can be achieved using XRP early and has created their whole brand around it by creating RippleNet technology which can be easily integrated with existing banks. Currently Ripple over hundreds of partner banks and several other RippleNet associates creating a financial network based on XRP and RippleNet.

This has allowed the Fintech firm to provide instance cross-border transactions with minimal cost. Ripple has invested $30 million for a 10% stake in MoneyGram earlier this year. As per the deal, MoneyGram can request for another $20 million from Ripple Labs

The deal would allow MoneyGram to use RippleNet’s xRapid which is an essential tool for cross-border liquidity using XRP. Alex Holmes, the chief executive of MoneyGram, said,

”instantly settle funds from US dollars to destination currencies on a 24/7 basis, which has the potential to revolutionize our operations and dramatically streamline our global liquidity management.”

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Author: Daniel W