Ripple attempts to pacify US regulators after libra hearings

Payments service provider Ripple has said crypto assets do not pose a threat to central bank control of monetary policy, following libra’s critical response from US lawmakers.

In an open letter to the US Congress, Ripple made an attempt to placate regulators by stating that crypto assets would be complementary to the dollar, while encouraging greater financial inclusion and economic growth.

Facebook’s libra faced harsh criticism from Congress earlier this month, with lawmakers describing the plan as “delusional”.

Ripple’s open letter comes just two days before new hearings on regulatory frameworks for crypto assets and blockchain are scheduled.

Ripple aspires to compete with dominant payment service provider Swift by embracing blockchain technology for cross-border payments, which has so far faced limited regulation.

However, as libra has brought massive scrutiny to the field, Ripple fears regulators will paint electronic payments “with a broad brush”.

Brad Garlinghouse, chief executive of Ripple, has previously voiced concerns on the effect that libra could have on the crypto asset industry, stating in an interview that Ripple could be “caught in the crossfire” of regulation.

This article first appeared on sister website Central Banking.