Cryptocurrencies must work with government regulators in order to sustain the crypto revolution, Ripple CEO Brad Garlinghouse said in an interview with CNBC today.
Speaking on CNBC’s Fast Money segment, the alt-coin entrepreneur told listeners: “It’s incredibly important that the entire industry recognizes that we have to work with the regulators, we have to work with the system.” This is contrary to what many enthusiasts believe is the whole point of cryptocurrencies in the first place; that Bitcoin et al should be a completely unregulated and decentralized form of currency which allows total financial freedom in the hands of its users.
Acknowledging the members of the bitcoin community “that really advocated not just down with banks but down with governments,” Garlinghouse stated that “we have been a contrarian relatively speaking in that regard.”
The Ripple CEO expressed similar sentiments in an interview with CoinTelegraph on Tuesday, acknowledging “We were from the beginning really looking at how we work with governments,” while some members of the crypto community were considering how to ‘destroy the government‘ or ‘circumvent banks‘.
The statements come amid the second troubling time for cryptocurrencies this year. The price of Bitcoin – a pretty good indicator of the health of the cryptocurrency market as a whole – dropped below the important $10,000 USD mark for the first time this month following news that the US Securities and Exchange Commission (SEC) stated that it will require digital cryptocurrency trading platforms to register with the agency. Regulatory concerns have repeatedly resulted in Bitcoin price tanks this year, and the SEC’s registration announcement was no different. Although Bitcoin is down -7.48% at the time of writing to a price of $10,048.40 USD, it hit as low as $9692.12 this morning.
Garlinghouse’s cryptocurrency Ripple allows customers such as banks and payment providers to send money globally ‘instantly, reliably and cost-effectively’ using blockchain technology. Its cryptocurrency coin XRP is currently valued at about $0.8 USD per coin, but its enormous circulation volume means that has a market cap of $34 billion.
Crypto enthusiasts may not agree with Garlinghouse’s statements, but it is true nonetheless that regulations are beginning to build. It seems that cryptocurrencies may become divided as to whether or not to work with or against governments and banks, and it will be interesting to see which side wins out.
Featured image: CCN