State Bank of Pakistan acknowledges Ripple's XRP potential
In an unexpected move, Pakistan's State Bank has highlighted Ripple's XRP cryptocurrency in its 2022 financial review, hinting at a potential openness to innovations despite the nation's existing ban on crypto trading.
The State Bank of Pakistan (SBP) released its annual Financial Stability Review for 2022 in July, featuring a section that discusses the risks and opportunities associated with cryptocurrencies and crypto assets. Within the report, SBP specifically mentioned Ripple's XRP cryptocurrency as an example of "encouraging work" that supports cross-border payments.
This acknowledgment is surprising considering the prevailing stance of cryptocurrencies being largely illegal in Pakistan. Moreover, recent statements from May indicate that the ban on crypto trading is expected to continue for the foreseeable future.
The report presents an overview of the global regulatory landscape surrounding cryptocurrencies and the diverse approaches taken by different countries. It addresses key risks posed by cryptocurrencies, including their implications for monetary policy, financial stability, and consumer protection. However, the report also acknowledges the potential benefits of blockchain technology, such as facilitating swift and cost-effective cross-border payments.
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Although some progress is being made in supporting cross-border payments, particularly through Ripple's XRP, the report emphasizes that such efforts are still relatively minor compared to the total volume of global cross-border transactions.
This mention of XRP indicates that the SBP recognizes the development work carried out to enhance international payments and settlements using the XRP ledger.
Ripple employs the XRP cryptocurrency and the XRP Ledger as integral components of its RippleNet platform, enabling real-time, low-cost cross-border transactions. Although XRP currently constitutes a small portion of global payments, Ripple continues to forge partnerships, collaborating with banks, payment providers, and central banks.
Despite Pakistan's ongoing ban on cryptocurrency trading, as reiterated in the report by SBP, the acknowledgment of Ripple's XRP efforts suggests a willingness to explore new financial technologies that could potentially benefit Pakistan's economy.
Source: https://crypto.news/