The State Bank of Pakistan (SBP), the country’s apex bank, has spotlighted XRP in one of its annual financial stability reports.
In particular, the SBP mentioned XRP while acknowledging its use case in facilitating cross-border payment. The top banking institution acknowledged XRP’s supportive role in the global payment settlement scheme.
Notably, the prominent XRP influencer WrathofKahneman brought the development to the crypto community’s attention in a recent tweet.
The State Bank of Pakistan, in their 2022 financial stability report, takes a dim view of crypto, noting #XRP as encouraging work despite its small size compared to global payment volume.https://t.co/t3SQu9CRkZ pic.twitter.com/1tgTWEpSF0
— WrathofKahneman ? (@WKahneman) August 22, 2023
SBP and Crypto Assets
In the financial report, the apex admitted the place of cryptocurrencies in the global financial landscape. It spotlighted the risks and opportunities cryptocurrencies present in the economy of things.
In particular, the SBP highlighted cryptocurrencies’ role in money laundering and terrorism financing. It mentioned the famous case of the Silk Road, a disbanded dark web for illegal activities.
Also, the SBP highlighted the collapse of the FTX crypto exchange and the implosion of Terraform Labs’ projects. Meanwhile, the bank captured the supervisory approaches various apex banks have undertaken regards crypto.
Amid the negative projections, the apex spotlighted some potential benefits of cryptocurrencies in enhancing financial inclusion and supporting cross-border payments. However, it argued that such benefits cannot be fully realized without certain enabling pre-conditions.
The SBP noted that fostering financial inclusion through crypto assets necessitates consumers to possess both financial and digital literacy. This requirement arises from the intricate and unpredictable nature of cryptocurrencies.
Furthermore, the SBP argued that the traditional financial system faces a similar challenge in adopting cryptocurrencies to facilitate cross-border payments. In this context, it acknowledged the encouraging work of the XRP technology.
The bank noted that the XRP technology only accounts for a small percentage of the global payment volume. This view may be attributed to the fact that blockchain technologies are much in their early stages of development and are yet to be widely adopted.
It is worth mentioning that, in its most recent financial review, the State Bank of Pakistan maintained that cryptocurrencies are not recognized as legal tender and lack government backing.
Moreover, the bank noted that it has not authorized or licensed any group or individuals to operate crypto trading platforms.
Countries Adopting Blockchain
Meanwhile, it bears mentioning that Ripple, the blockchain technology firm offering XRP for cross-border payment, is in active discussions with 30 countries to adopt blockchain solutions. As The Crypto Basic reported, it is estimated that more than 15% of world nations could adopt Ripple’s CBDC platform.