VP of Ripple: Our network, unlike Libra …

Vice President of Ripple: Our network, unlike Libra, is not a closed system

Facebook’s plan to launch its own digital currency has a significant flaw, says Ripple senior vice president Markus Tracher.

In a conversation with CNBC, he called Libra literally a “walled garden” or, in other words, a closed ecosystem. The term was previously used to refer to tech companies like Facebook and Apple to describe the control they have over their software. Also, British MP Demyan Collins mentioned it, talking about the risks directly to Libra.

Facebook intends to entrust the management of Libra to a Swiss-registered organization, of which Visa, PayPal and Uber can become members. This, according to Tracher, is the main problem with stablecoin. At the same time, Ripple does not have such a structure, he added..

“Yes, this is a network, but it has no parameter. It connects with all the players who want to use the technology, ”said Tracher, noting that he was pleased to see a large Silicon Valley company enter the digital asset space..

Earlier, Ripple became a defendant in a lawsuit, one of the arguments of the initiators of which is that the company has significant control over the XRP cryptocurrency it issued.

VP of Ripple: Our network, unlike Libra ...

Facebook, meanwhile, is also forced to defend the interests of Libra, but at a different level. Facebook COO Sherrill Sandberg will be attending a U.S. Congress meeting to discuss digital currency, Bloomberg reports. According to sources, Facebook intends to seek a hearing in late October, but it may be postponed to a later date..

In July, the head of Facebook’s blockchain division David Marcus was invited to give explanations about Libra to both houses of Congress..