The ambitious crypto project Libra that is aiming to put an end to Western Union and to work allowing people to make transnational payments avoiding banks has been raising critics not only from multiple regulators but also from ‘colleagues’ in the crypto industry.
Ripple’s CEO and Ripple’s senior vice president working with customers are of positive opinion of Libra. However, they cannot but throw a few stones at Facebook’s recent bold project.
Facebook's Libra project is a 'walled garden,' Ripple exec says https://t.co/5lza8fwzy8— CNBC (@CNBC) September 27, 2019
‘Libra is a walled garden’, says Marcus Treacher
Earlier this week, a Ripple top executive dealing with customers, Marcus Treacher, said in his CNBC interview that Libra is a walled garden, meaning that it is a closed system, unlike other cryptocurrencies, including XRP. This is its biggest drawback, as per Treacher.
Perhaps he was referring to control that Facebook has over its users’ data, its apps and its software, same as Apple does.
However, a good thing is that by entering the crypto space, Facebook has drawn a great deal of attention to this industry.
Ripple CEO says, Libra spits into the wind
When a CNBC anchor spoke to the Ripple CEO, Mr. Garlinghouse admitted that Libra, even though not launched yet, is doing a lot to expose crypto to retail users. Still, there were a few points where the head of Ripple criticized Facebook’s crypto project.
Among other things, as per Garlinghouse, he was surprised when he saw that the Libra Association does not have any banks among its members.
A surprise to me, for example, is that in the 28 groups that signed on to the Libra whitepaper, you have zero banks.
Garlinghouse added that this seems to be a ‘stark contrast’ to where Ripple is headed by collaborating with major banks around the globe. On Thursday, e.g., U.Today reported that Ripple signed up the second-biggest bank in South Korea to RippleNet.
He stated that Facebook has been approaching Libra launch with ‘Silicon Valley arrogance’ by opposing the current financial system, whereas Ripple is doing its best to collaborate and does not see any other way of working.