IMF 2023 Doc Positions XRP as a Solution to Enhance Cross-Border Payments

XRP has captured the attention of several leading organizations, including the IMF, which released a doc recognizing the asset as an option to enhance cross-border payments.

As XRP progresses in the cryptocurrency market, its renown has transcended the crypto scene. Interestingly, a document released by the International Monetary Fund (IMF) recognized XRP as one of the options for enhancing cross-border payments.

Prepared in March 2023 by four industry specialists, including IMF’s Financial Counsellor Tobias Adrian, the IMF FinTech Note titled “Trust Bridges and Money Flows”  highlights the challenges faced with cross-border payments and possible solutions for addressing them.

The Problem with Cross-Border Payments

The  IMF  paper finds cross-border payments slow, opaque, and expensive. These challenges have existed for a long time, discouraging and limiting the ability of people to move money internationally. The paper attributes these issues to limited trust among financial institutions and end users.

According to the publication, interoperability between domestic banks is easy to achieve due to the trust initiated by the country’s central bank. However, when it comes to transnational payments, interoperability becomes more difficult due to a lack of a global central bank.

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