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

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.

Exactly, we need to be compliant with legislation!

— Remessa Online (@RemessaOnline) February 5, 2019

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.”

INTERVIEW PART I 👇🏼
"Once regulators understand you're not circumventing regulatory frameworks they get very comfortable very quickly," @Ripple CEO @bgarlinghouse explains why he's on a mission to educate regulators around the world. pic.twitter.com/2PMVvj3PZU

— Julia Chatterley (@jchatterleyCNN) February 17, 2020

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).”

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).

— 🇬🇧UKXRP🏴󠁧󠁢󠁥󠁮󠁧󠁿 (@UKXRP1) February 25, 2020