IMF Quietly Recognized XRP for Cross-Border Payments in 2018

As IMF works on a global CBDC platform, the institution recognized Ripple and XRP’s potential in cross-border payments.

While the International Monetary Fund (IMF) has been vocal in its cautious and skeptical crypto stance, a document from five years ago reveals how the institution had recognized Ripple Labs and XRP in a favorable light.

The IMF’s recognition came during a 2018 September presentation on “The Regulation of Virtual Currencies,” where they classified XRP as a coin Ripple utilizes for digital payments. The IMF also highlighted the capabilities of XRP in facilitating cross-border transactions, a challenge the IMF is striving to address for central banks worldwide.

Similarly, a presentation from November 2018 showed Ripple’s selection to be part of an esteemed High-Level Advisory Group on Fintech, with Ripple’s Executive Chairman, Chris Larsen, serving as a distinguished member of the group.

The IMF has often expressed concerns about the risks associated with digital assets, including money laundering and illicit activities. However, in a more recent report, the IMF also recognizes the legitimate applications of crypto, such as XRP, in remittances and cross-border payments.

Nonetheless, it emphasizes balancing crypto assets’ potential benefits and risks while developing appropriate regulatory frameworks.

IMF’s Lastest Move with CBDC

Recently, IMF Managing Director Kristalina Georgieva announced that the IMF is actively working on a global central bank digital currency (CBDC) platform. Georgieva emphasized the need for CBDCs to foster efficient and fair cross-border transactions, promoting interoperability between countries.

Recall that Ripple representatives participated with IMF last month in a symposium about the next steps for cross-border with CBDC, as reported by The Crypto Basic.

By establishing a common regulatory framework for digital currencies, the IMF aims to prevent a fragmented landscape that crypto could potentially fill. Georgieva warns that without a unified approach, a vacuum may form, leaving room for crypto to take the lead.

The significance of the IMF’s recognition of XRP in 2018 becomes even more apparent, considering Ripple’s expertise in cross-border payments. As The Crypto Basic disclosed last week, Ripple’s solution is now the basis for CBDC pilots in five countries.