State Bank of Pakistan Recognizes Ripple and XRP in Financial Stability Report

The State Bank of Pakistan (SBP) has acknowledged the promising work of Ripple and XRP in the global payment ecosystem in their 2022 financial stability report. While the SBP recognizes the potential benefits of crypto assets, they also highlight the need for enabling pre-conditions. Despite the small size of Ripple’s XRP compared to global payment volume, the SBP sees it as encouraging work in supporting cross-border payments.

SBP’s Cautious Stance on Cryptocurrencies

Although the SBP acknowledges the potential of cryptos like XRP, they maintain a cautious stance due to the inherent risks associated with cryptocurrencies. The report mentions the potential use of cryptocurrencies in money laundering and terrorism financing, citing examples like Silk Road and the collapse of crypto exchanges. It is worth noting that the SBP has not recognized any cryptocurrency as legal tender.

Contrast with Stablecoins

The SBP’s view on XRP stands in contrast to the global traction stablecoins have gained. According to a new study, stablecoins settled over $11 trillion on-chain, surpassing the payment volumes of PayPal and almost reaching the volume settled by Visa. This highlights the growing popularity of stablecoins in the financial landscape.

XRP Price and Future Outlook

Currently, the XRP price is trading at $0.5188, having lost most of its gains from Ripple’s victory against the US Securities and Exchange Commission. XRP is facing the 200-day EMA at $0.5251, with a potential breakout target of $0.5540.

Hot Take

The State Bank of Pakistan’s recognition of Ripple and XRP in their financial stability report is a significant development. Despite the risks associated with cryptocurrencies, the SBP acknowledges the potential of XRP in facilitating cross-border payments. This recognition highlights the evolving financial landscape and the growing influence of cryptocurrencies like XRP.