IIF Acknowledges Ripple and XRP

This acknowledgment was included in the IIF’s response to the Bank for International Settlements (BIS) consultation through its Committee on Payments and Market Infrastructures (CPMI), as part of the G20’s initiative to modernize global payments.

WrathofKahneman (WOK),a commentator in the XRP community,highlighted this recognition,noting that while the IIF paper acknowledged Ripple’s blockchain-based model using XRP,it did not mention RLUSD,Ripple’s newly launched stablecoin,despite referencing other stablecoins.

WOK suggested the omission of RLUSD was likely due to timing, as it launched in December 2024, shortly before the IIF document was submitted. RLUSD has since been integrated into Ripple Payments, Ripple’s enterprise-grade cross-border payment infrastructure.

XRP as a Viable Alternative

The IIF’s consultation paper described Ripple’s technology and XRP as providing a new infrastructure for moving value across borders. The document highlighted XRP’s utility as a non-stablecoin crypto asset, offering cost and speed advantages.

Ripple’s system uses the XRP Ledger to enable near-instant settlement, bypassing the inefficiencies of traditional correspondent banking. This model is especially useful in corridors underserved by conventional banking systems.

The IIF document also discussed innovations aimed at improving cross-border transactions, including efforts to implement global messaging standards like ISO 20022, initiatives like Project Agorá, and the Regulated Liability Network.

Stablecoins in the Spotlight

The IIF paper highlighted stablecoins as another tool in the cross-border payment toolkit, specifically mentioning Circle’s USDC, PayPal’s USD-backed stablecoin (PYUSD), and coinbase’s Layer 2 blockchain solution, Base.

Thes platforms were noted for their ability to execute international transfers at low costs and high speeds. Ripple reportedly offered to purchase Circle for $4 billion to $5 billion, but the offer was declined.

RLUSD’s absence from the stablecoin mentions appears to be a matter of timing, given its recent launch.

Growing Recognition for Ripple and XRP

Ripple and XRP are increasingly recognized in the international payments landscape.MasterCard acknowledged Ripple’s partner SBI Remit for using XRP as a bridge currency in its remittance services.

A previous World Bank report highlighted XRP as a token that boosts utility in cross-border transactions. The International Monetary Fund (IMF) and the world Economic Forum have also discussed Ripple’s blockchain and XRP’s utility in unlocking capital tied up in legacy systems. Morgan Stanley has considered Ripple as a viable alternative to SWIFT in international payments.

FAQ

• What did the IIF acknowledge? The IIF acknowledged Ripple and XRP as viable alternatives for cross-border payments.
• Why wasn’t RLUSD mentioned? RLUSD was likely too new, having launched shortly before the IIF document was submitted.
• What are the benefits of using XRP? XRP offers cost and speed advantages, enabling near-instant settlement.