IMF and XC Platform raise concerns for XRP.
The International Monetary Fund (IMF) has acknowledged the use of cryptocurrency assets, particularly Ripple’s XRP, in facilitating cross-border payments and remittances. Reuters reported that the IMF plans to launch a platform to enable the creation and transactions of central bank digital currencies (CBDC).
These acknowledgments have excited the XRP community in the past. However, a well-known XRP influencer recently stated that the new XC platform and the IMF’s cross-border documents do not directly support XRP.
IMF Documents and Upcoming Platform Don’t Directly Favor XRP
The influencer, WrathofKahneman, took to Twitter to clarify that the IMF does not have direct support for XRP.
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“Man, the IMF docs are neither pro-XRP nor the XC platform. There are 3 docs worth reading to decide for yourself.”
In 2018, the IMF organized a presentation titled “The Regulation of Virtual Currencies,” where they classified XRP as a coin for digital payments, highlighting its ability to facilitate cross-border payments, which has been a challenge for central banks.
Earlier in February, the IMF published a paper recognizing the importance of cryptocurrency assets such as XRP for cross-border payments and remittances.
On June 19th, the IMF published another paper stating their plans to launch an XC platform where many wholesale central bank digital currency projects can interoperate. According to the IMF report, this is an evolution of wholesale CBDC, which is both a settlement asset and infrastructure. However, according to WOK, the XRP community exaggerated the whole plan, implying support for Ripple.
WrathofKahneman added that the documents mentioned not only Ripple but also pointed out its rivals, Bitcoin Lightning Network and Stellar Blockchain, implying that the network wasn’t unique as touted.
Regarding the XC platform, WOK said, “I think the IMF is trying to envision a single global cross-border clearinghouse. It’s cool but hard to imagine major economies sharing exposure so nakedly. They mention blockchain/crypto need not be used at all.”
International Monetary Fund is Aware of Ripple and Stellar But Didn’t Indicate Adoption, WOK
WOK’s tweet sparked a discussion around the topic, and a Twitter user asked him if the IMF’s mention of Stellar or Ripple could increase the possibility of adopting the assets for future cross-border payments models or decrease it. In response, WOK said that it would slightly increase the possibility because it indicates that the IMF is aware of XRP and Ripple. However, that does not mean they are planning to adopt them.
XRP is currently trading at $0.499 at the time of writing, up 1.34% in the last 24 hours, according to data from Coinmarketcap.
Featured image from Pixabay and chart from Tradingview.com