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JPMorgan Cites Ripple and XRP As Top Players to Unlock $120B Trapped in Cross-Border Payments

In a bold move that could reshape the future of cross-border payments, JPMorgan has proposed a multi-currency central bank digital currency (mCBDC) network as a solution to the $120 billion problem plaguing the industry.

While acknowledging the efforts of private entities like Ripple and SWIFT, JPMorgan asserts that their solutions have only achieved partial success and a more comprehensive approach is necessary.

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Challenges in Cross-Border Payments

The report highlights the staggering $23.5 trillion transferred annually by multinational corporations, representing a quarter of the global GDP. Yet, these transactions are hampered by outdated systems plagued by high costs, slow speeds, and lack of transparency.

These inefficiencies trap an estimated $120 billion in value each year, a burden businesses and consumers bear.

JPMorgan acknowledges the efforts of private entities like Ripple, SWIFT, and CLS in tackling cross-border payment challenges. Ripple’s real-time settlement system utilizing XRP offers a glimpse of the future, but its volatility raises concerns for banks.

SWIFT, which aims for transparency and speed, remains reliant on the antiquated correspondent banking system, perpetuating trapped liquidity and settlement risks.

The Proposed Solution

JPMorgan proposes a novel solution: a multi-currency central bank digital currency network. This network, built on blockchain technology, could revolutionize cross-border payments by offering:

1. Real-time, 24/7 settlements: Eliminating delays and speeding up transactions significantly.

2. Reduced costs: By minimizing intermediary fees and eliminating conversion costs.

3. Enhanced transparency: Providing end-to-end visibility into transactions, fostering trust and accountability.

4. Improved security: Leveraging the inherent security of blockchain technology to protect transactions.

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Implications and Future Outlook

JPMorgan’s proposal marks a significant shift in the cross-border payments landscape. It recognizes the limitations of existing solutions and calls for collaboration between central banks and private entities to design and implement a global mCBDC network.

This collaboration could unlock the trapped $120 billion value and create a more efficient, transparent, and secure cross-border payment system for businesses and individuals.


While the path toward an mCBDC network is long and complex, JPMorgan’s proposal reignites the conversation about the future of cross-border payments.

By acknowledging the limitations of existing solutions and proposing a bold new approach, JPMorgan has positioned itself at the forefront of this critical discussion.

Whether mCBDCs become the ultimate solution or not, they have undeniably pushed the boundaries of what’s possible, paving the way for a future where cross-border payments are seamless, instant, and accessible to all.

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Adedoyin Aka
Adedoyin Aka
Adedoyin is a graduate of Law and a Crypto & Blockchain expert who strongly believes that Blockchain is the future. At TimesTabloid, she focuses on crypto and blockchain educational content.

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