Crypto billionaire Mike Novogratz has revealed something unexpected about his relationship with Ripple Labs. Meanwhile, while the IMF was working on a global CBDC platform, the institution realized the potential of Ripple and XRP in cross-border payments.
Mike Novogratz confirmed his affiliation with this cryptocurrency!
Responding to speculation about Hinman emails by “Mr. Huber,” a vocal XRP community member, Novogratz spoke about his relationship with Ripple. In this context, Novogratz shared the following on Twitter:
The only person I remember talking to about SEC issues was Brad Garlinghouse, who visited them quite regularly. I have invested in Ripple Labs since day one and have not sold any of my shares in the last ten years.
Galaxy Digital CEO announced that he has been an investor in Ripple Labs since day one. He also stated that he has not sold any of his shares in the last 10 years. Going back to what triggered the announcement, XRP community member Mr. Huber speculated that Novogratz may have gotten inside information about the controversial speech of former SEC official William “Bill” Hinman. Meanwhile, Novogratz later deleted his corresponding tweet.
As you follow on Kriptokoin.com, the highly anticipated Hinman documents were made public on 13 June. Prior to that, Novogratz discussed these documents in a Bloomberg interview. He also claimed that they will show whether the SEC has the authority to regulate cryptocurrencies. According to the documents released, discussions about what happened behind the scenes continue.
Novogratz says he’s never met Bill Hinman
Mike Novogratz replied that he had never spoken to William Hinman. He also made it clear that he did not correspond with her. Novogratz said, “To be frank, I have never contacted Bill Hinman. I have never spoken or written to him,” she replied. The Galaxy Digital CEO added that he only spoke to Ripple CEO Brad Garlinghouse about SEC issues.
This statement remains surprising as Novogratz has criticized XRP in the past. He said at one point that he never liked XRP and that “one group owns too much”. Novogratz once criticized the XRP price rally. Because according to him, this rally didn’t make much sense. At this point, it is important to note that XRP and Ripple are different assets, although they are often confused. XRP is the native asset of XRP Ledger. Ripple is a fintech company that builds global payment products.
The IMF quietly recognized this cryptocurrency!
The International Monetary Fund (IMF) was making noise with its cautious and skeptical crypto stance. However, a document from five years ago reveals how the institution saw Ripple Labs and XRP in a positive light. The recognition of the IMF took place during a presentation on “Regulation of Virtual Currencies” in September 2018. Here he classified XRP as a cryptocurrency that Ripple uses for digital payments. The IMF also highlighted XRP’s capabilities in facilitating cross-border transactions. Because that’s a challenge the IMF is trying to address for central banks around the world.
Similarly, a presentation in November 2018 showed that Ripple was selected as part of a respected Senior Advisory Group on Fintech, with Ripple’s Chief Executive Officer Chris Larsen serving as a distinguished member of the group. The IMF has often expressed its concerns about the risks associated with digital assets, including money laundering and illegal activities. However, in a more recent report, the IMF also acknowledged the legitimate applications of cryptos like XRP in remittances and cross-border payments. However, he stressed balancing the potential benefits and risks of crypto assets while developing appropriate regulatory frameworks.
IMF’s latest move with CBDC
Recently, IMF Managing Director Kristalina Georgieva announced that the IMF is actively working on a global central bank digital currency (CBDC) platform. Georgieva stressed that CBDCs should support efficient and fair cross-border transactions by promoting interoperability between countries.
Meanwhile, representatives of Ripple attended a symposium with the IMF last month on the next steps for cross-border with the CBDC. The IMF is trying to establish a common regulatory framework for digital currencies. Thus, it aims to avoid a fragmented landscape that crypto would potentially fill. Georgieva warns that without a unified approach, a vacuum could form. He also argues that it will leave room for crypto to take the lead.
Ripple’s expertise in cross-border payments is notable. With that in mind, the importance of the IMF recognizing XRP in 2018 becomes even more apparent. Because Ripple’s solution is currently the core of CBDC pilots in five countries.
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