Ripple Inc. is at a decisive point. Talks of XRP hurtling towards an implosion has subsided and the coin performance, is so far, decent.
The question amongst supporters is whether Ripple Inc.’s solutions, and for them to be mainstream, need supportive regulation or improved liquidity, or a combination of both.
Are we waiting for regulations for the banks to go live with ODL or are we waiting for sufficient liquidity? What do you believe?
— xNEO (@X__Anderson) February 25, 2020
Compliance over Liquidity
This is what’s splitting opinion since Ripple Inc.’s executives have diverging views on the best way forward.
According to supporters and online commentators, Brad Garlinghouse, the CEO of Ripple Inc. views regulation as the biggest impediment for XRP and crypto adoption.
For good reasons.
Recently, the US Secretary to Treasury, Steven Mnuchin said the country’s regulators would soon make proposals to better guide the space’s trajectory.
He seems to echo President Donald Trump’s view on cryptocurrencies and Bitcoin. At the wake of Libra’s ambitious goal of creating a global currency, he said crypto are backed by thin air and must remain compliant.
It is this compliance that is a big impediment for Ripple and XRP.
There are financial providers like Ramessa Online that while admiring XRP as a cheap alternative to SWIFT which though developing and embracing technology is still expensive, are cautious and pulling the regulations card.
They are explicit stating the use of XRP through On Demand Liquidity (ODL), must have the approval from relevant regulations before incorporation.