US Faster Payment Council Acknowledges Ripple’s Cross-Border Solution for Efficient Payments

• The US Faster Payments Council (FPC) has recognized Ripple’s cross-border payment solution, built using XRP, for its potential to enhance the efficiency and cost-effectiveness of the industry.
• In its Cross-Border Faster Payments White Paper, the FPC also explored the potential impact of U.S. CBDCs on real-time cross-border payments and mentioned other noteworthy solutions, such as Circle’s USDC.

The U.S. Faster Payments Council (FPC) has identified Ripple’s cross-border payment solution as an industry game-changer in a recent document discussing cross-border payment systems. By utilizing Ripple’s native digital asset, XRP, this solution is acknowledged for its potential to augment efficiency and reduce operational costs in the financial sector.

This recognition surfaced when a pro-XRP Twitter account shared snippets of the FPC document. The paper is a product of the FPC’s Cross-Border Payments Work Group, which was established in 2020. Comprising 30 diverse members, this group has been devoted to exploring avenues for faster cross-border payments. In June 2021, it published the ‘Cross-Border Faster Payments White Paper,’ which discussed the prerequisites for more rapid and efficient cross-border transactions, underscoring aspects such as speed, cost, ubiquity, transparency, and risk.

The work group broadened its mission a year later to include global initiatives influencing cross-border payments, like cryptocurrencies. Under this expanded charter, the group delved into the prospective impact of U.S. Central Bank Digital Currencies (CBDCs) on the adoption of real-time cross-border payments, assessing various market solutions, with Ripple’s offering receiving notable attention.

The FPC document highlighted that Ripple’s solution, underpinned by a blockchain ledger and XRP, serves as a bridge for local fiat currencies. This setup allows financial institutions and payment providers worldwide to connect within a global network, thereby enabling instant, transparent, and final cross-border payments. A noteworthy benefit of Ripple’s solution is its ability to eliminate the need for pre-funding destination accounts, which cuts operational costs and frees up capital for institutions.

Although Ripple’s solution was a focal point, the FPC document recognized other significant options. For example, it mentioned Circle, which provides cross-border value exchange through USDC, a stablecoin pegged to the dollar. The International Monetary Fund (IMF) has also recognized Ripple as a crucial facilitator of cross-border payment, as reported by The Crypto Basic.

In essence, Ripple’s innovative use of the XRP Ledger (XRPL) for fast and affordable payments has captured the attention of industry leaders, underscoring its potential as a trailblazing innovation. Such persistent recognition further amplifies Ripple’s presence and lays a robust foundation for its global adoption.

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