XRP Gets Recognized By Atlanta Fed Reserve Bank As Global Payment Solution

May 29, 2023 10:45 pm Comments

The Federal Reserve Bank of Atlanta just released a new report where XRP was mentioned as an “international payment medium”.

This is quite the milestone as it is very rare for reserve banks within the United States to recognize a digital asset or a cryptocurrency in any official capacity.

The fact that XRP was mentioned in such a way within the report indicates the massive influence that XRP has had when it comes to the cross-border settlement industry.

The report goes into detail about how Ripple uses the XRP ledger in order to facilitate cross-border settlements at extremely low costs and quick speeds.

As a result, it makes sense why XRP is becoming an international standard where even reserve banks have no choice but to admit it.

Bitcoinist reports:

The XRP Ledger operates as an efficient institutional and cross-border payment medium with low-cost transactions of $0.0002 at a speed of 3-5 seconds.

The network is also scalable completing 1500 transactions per second and boasts of green attributes stemming from its carbon-neutral and energy-efficient operations.

While the report focused on bolstering the effect of Web3 on financial services, the Atlanta Federal Reserve Bank also mentioned the relevance of XRP and Stellar network in value transfers.

According to the report, XRP is “roughly envisioned as an international payment medium or wholesale settlement coin.”

Compared to the traditional way of doing cross-border settlements, XRP exceeds in almost every way when it comes to speed or transaction cost.

Additionally, the report also describes how more and more public insitutions such as central banks are now adopting blockchain technology.

With the direction of this new trend being very clear, it is evident that XRP will continue to have a large role to play in this space in the future.

The bank has not shared any details on whether or not it will actually adopt XRP and use it for settlements, but it is obvious that central banks are studying the XRP model due to its international success.

This is all despite the fact that Ripple is still facing a lawsuit against the SEC.

CoinTelegraph concludes:

Ripple has garnered much attention for its deals with countries such as Montenegro for the development of CBDCs.

There has been much speculation about the United States Federal Reserve’s plans to introduce a CBDC, which the Fed has not confirmed.

Parlour gives no indication of any plans of this type or that the Fed is thinking of using XRP for any purpose.

Ripple is also in a legal dispute with the Securities and Exchange Commission over the status of XRP as a security.

In addition, Parlour discusses tokenized bank deposits, a concept promoted by the USDF Consortium, whose CEO, Robert Morgan, recently described as a “third way” between traditional finance and DeFi to a U.S. House of Representatives subcommittee.

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