Cryptocurrency

Atlanta Fed Reserve Bank Describes XRP as an “International Payment Medium or Settlement Coin”

A U.S. Federal Reserve Bank district, The Federal Reserve Bank of Atlanta, announced XRP as a certified global payment option. Atlanta Fed Reserve Bank declaration is coming after the U.S.-based bank district recently focussed attention on Ripple’s mode of operation and how the company utilizes XRP to enhance cross-border payment requirements.

The Atlanta Fed Reserve Bank made known its stance known in its latest Policy Hub iteration from the Atlanta Fed titled, “An Introduction to Web3 with Implications for Financial Services.”

Read Also: Ripple Making Progress With CBDC Solutions: Details

A Brief Insight Into The Fed Reserve Bank Report

The report is centered primarily on the promise of Web3 and the application of digital assets. The report also highlighted the increasing adoption rate of Web3 and blockchain technology, especially among public institutions such as central banks.

The report also features Project Mariana, an established proof of concept initiated by the Bank of France, the Bank for International Settlements (BIS), and several other financial settings.

According to the Fed Reserve Bank, Ripple and Stellar are two blockchains most suitable for facilitating Mariana’s principal objective of enhancing seamless cross-border settlements. The report further notes that XRP is “roughly envisioned as an international payment medium or wholesale settlement coin.”

While the report seems to focus more on XRP, it is worth noting that it includes a bigger Web3 picture in the background report information. Also, the paper did not mention if the Atlanta Fed intends to adopt XRP as a payment option.

Read Also: Get Ready for More CBDCs: Ripple Senior Advisor Says More Announcements Coming Soon

Ripple in the CBDC Development Space

Recently, Ripple announced the launch of its personalized (Central Bank Digital Currencies) (CBDCs) platform developed in partnership with the Central Bank of Montenegro. The digital currency platform enables central banks to create their digital currencies. Financial firms using this platform are eligible to use XRP and some selected coins as a bridge currency.


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Chinedu Agbakwusi

Chinedu Agbakwusi is a medical student at the prestigious Nnamdi Azikiwe University with sound knowledge of the crypto space. I am here to be a reliable plug for well-researched crypto content ranging from crypto news to market analyses and blockchain inventions.

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