Is Ripple [XRP]’s Adoption Depends on Regulation or on Liquidity? Survey Reveals

By Dalmas Ngetich
Published February 26, 2020 Updated February 26, 2020
Best Buy In





Is Ripple [XRP]’s Adoption Depends on Regulation or on Liquidity? Survey Reveals

By Dalmas Ngetich
Published February 26, 2020 Updated February 26, 2020

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.

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.

Brad Garlinghouse aim is to educate

Specifically, in a recent interview with CNN, Brad Garlinghouse was clear that they are on a mission to educate people and not circumvent laws.

“A lot of what I am doing […] is meeting with regulators, meeting with very senior people at banks and explaining to them how crypto can be used — specifically XRP — can be used to solve a real problem, not to circumvent regulation. […] Once people understand that, they very quickly become disarmed, it’s no longer a bad word.”

Liquidity First, Banks will follow says Ripple Inc.’s CEO David Schwartz

On the other hand, David Schwartz is of the view that liquidity must first build up before banks flow back in droves and support the system.

Through ODL, the Ripple network has grown and MoneyGram is a big part of this drive. Supplementing Bitso, movement of value across the United States to Mexico is at near all-times high.

“If regs were the issue, how and why would MoneyGram be sending $54 million a week from USA to Mexico through XRP? It’s liquidity and market makers and takers that’s needed. Ripple is essentially funding MoneyGram and Bitso to enable the US>MX as a live proof of concept (IMO).”

The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
About Author
Dalmas Ngetich
335 Articles
Dalmas is a very active cryptocurrency content creator and highly regarded technical analyst. He’s passionate about blockchain technology and the futuristic potential of cryptocurrencies and enjoys the opportunity to help educate bitcoin enthusiasts through his writing insights and coin price chart analysis. Follow him at @dalmas_ngetich

Loading Next Story