Facebook CEO Mark Zuckerberg acknowledged in his testimony before Congress on Wednesday that he and his company are not the “ideal messenger” to bring a cryptocurrency like Facebook’s Libra to the market right now, citing the company's past issues with data protection.
Continue Reading Below
“I think [in] any financial service, you have to have that foundation of trust, so I think that the timing is interesting to see Facebook lead on this,” Garlinghouse said.
Ripple is a software company that sells technologies to banks, such as their product RippleNet which is a network of banks and payment providers.
Ideally, Ripple offers clients a way to send and receive payments internationally.
Garlinghouse said, while his company agrees with Facebook that cryptocurrencies need to be available, "the difference is, the technologies [Zuckerberg is] talking about are already in the market today."
"The good news is we agree with the vision, I think, we probably disagree with how do we get there."
Garlinghouse acknowledges there are legitimate reasons for the decision to establish Libra in Switzerland, specifically citing the lack of regulatory clarity there, but he questions its propriety.
“When [you are] trying to rebuild trust, you can’t on one hand say, 'hey we’re going to extend American leadership,' yet set [Libra] up in Switzerland,” Garlinghouse said.
He said at the root of any financial institution is "trust" which is why the "trust deficit" he claims Facebook is operating from is "awkward to him."