Ripple’s XRP Recognized as a Viable Option for International Payments
Ripple‘s XRP has been named by the Institute of International Finance (IIF) as a feasible choice for international payments in its recent response to a Bank for International Settlements (BIS) consultation. It is contained in the G20’s road map of how payments should modernize across the globe and has been presented under the Committee on Payments and Market Infrastructures (CPMI).
The IIF’s report mentioned Ripple as providing new infrastructure that facilitates the movement of money across borders. XRP that is not a stablecoin stood out as delivering quicker and lower-cost transactions relative to current systems. The report particularly complimented the capacity of the network of Ripple in providing near-instant settlement times with the XRP Ledger.
Ripple’s cross-border framework has received increased consideration of late as legacy correspondent banking systems suffer from high costs and sluggish speed. The IIF says that the system of Ripple is superior in terms of clarity in regions with insufficient banking facilities.
Global Institutions Recognize XRP Use in Remittances
The IIF report developed several payment innovations as well. It addressed new messaging formats such as ISO 20022 and wider projects such as Project Agorá and the Regulated Liability Network. These projects aim for low-cost and high-speed payments between countries. Ripple’s solution was placed within this wider set of alternatives.
Among the platforms reviewed were stablecoins from large companies. Circle’s USDC, PYUSD of PayPal, and Base Layer 2 blockchain solution of Coinbase were all noted for their robust overseas uses. While there was no mention of Ripple’s stablecoin RLUSD, analysts expect that the rationale behind this is the fact that it launched in early December 2024.
WrathofKahneman (WOK), a widely known XRP influencer, suggested that the exclusion of RLUSD stemmed from the fact that the document had already been prepared when it was released by the IIF. Since its launch, however, RLUSD has appeared on Ripple Payments, the company’s institutional-grade framework for international transfers.
Ripple Expands Despite Missed Mention of RLUSD
The lack of inclusion of RLUSD in the report stands out against the continued push by Ripple for growth. In the earlier part of the year, Ripple had tried to acquire Circle for a sum of $4 billion and $5 billion, though the transaction failed. Even with the lack of inclusion of RLUSD in the IIF paper, Ripple is progressing with its entry into the cross-border payments space.
In a separate development, SBI Remit, a partner of Ripple, received recognition from MasterCard for its utilization of XRP as a bridging asset in the remittance transfer process. This is an indicator of the actual utilization of the technology in streamlining the transfer process and lessening the overheads involved.
The previous report by the World Bank had already mentioned XRP in the context of digital assets used for enhancing cross-border payment streams. It included XRP as a digital token that has the potential to make transactions more efficient in this context.