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HomeCrypto NewsMarketState Bank of Pakistan Spotlights XRP in Its Recent Financial Stability Report

State Bank of Pakistan Spotlights XRP in Its Recent Financial Stability Report

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The State Bank of Pakistan (SBP), the country’s apex bank, has spotlighted XRP in one of its annual financial stability reports.

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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.

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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.

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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.

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Disclaimer: This content is informational and should not be considered financial advice. The views expressed in this article may include the author's personal opinions and do not reflect The Crypto Basic’s opinion. Readers are encouraged to do thorough research before making any investment decisions. The Crypto Basic is not responsible for any financial losses.

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Author

Abdulkarim Abdulwahab
Abdulkarim Abdulwahabhttp://thecryptobasic.com
Abdulkarim Abdulwahab is a blockchain writer with a specific interest in journalistic writing. He covers breaking events in the crypto community and blockchain industry. Over the past year, he has published over 1,500 short-form and long-form content for Web3 publishing firms.

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