US FP Council Spotlights Ripple Solution for Cross-border Payments

The U.S. Faster Payment Council acknowledges Ripple cross-border payment solution in enhancing efficiency and reducing costs in the industry through the use of XRP.

In a significant development, it has been revealed that the U.S. Faster Payment Council (FPC) highlighted the capabilities of Ripple and XRP in a document discussing cross-border payment solutions. 

A pro-XRP Twitter account shared screenshots of the document, revealing the council’s recognition of Ripple’s solution as a potential game-changer in the industry.

💥🚨🚨 US FEDERAL FASTER PAYMENTS COUNCIL MENTIONS RIPPLE AND CRYPTOCURRENCY WITHIN CROSS BORDER PAYMENTS REPORT + “RIPPLE SOLUTION LEVERAGES A BLOCKCHAIN WITH A DIGITAL ASSET (XRP) WHICH ACTS A BRIDGE BETWEEN LOCAL (DOMESTIC) FIAT CURRENCIES” 🚨🚨🚨🚨🚨🚨🚨💥 pic.twitter.com/WzIYXhLw4l

— ISO 20022…. LET’S DO IT (@Rohitku24694375) June 30, 2023

FPC Document

The FPC’s Cross-Border Payments Work Group, established in 2020 with 30 diverse members, had diligently explored ways to enhance faster cross-border payments. In June 2021, it published the ‘Cross-Border Faster Payments White Paper.’ 

The report outlined the requirements for faster and more efficient cross-border transactions, emphasizing speed, cost, ubiquity, transparency, and risk. The workgroup underwent a significant shift in focus a year later, expanding its mission to cover global initiatives impacting cross-border faster payments, such as cryptocurrency. 

Under the revised charter, the FPC’s workgroup investigated the potential impact of U.S. CBDCs on the adoption of real-time cross-border payments. It examined various solutions currently available in the market, with Ripple’s solution garnering particular attention.

FPC Spotlights Ripple

The document noted that Ripple’s solution, built on a blockchain ledger and utilizing XRP as a digital asset, acts as a bridge between local fiat currencies. This solution enables financial institutions and payment providers worldwide to connect within a global network, facilitating instant, transparent, and final cross-border payments. 

It also highlighted that Ripple’s solution eliminates the need for pre-funding destination accounts, reducing operational costs and unlocking capital for institutions.

While Ripple’s solution stood out, the FPC’s document acknowledged other noteworthy options. It included Circle, which offers cross-border value exchange through a stablecoin pegged to the dollar, USDC. 

It is worth mentioning that, as The Crypto Basic reported, the International Monetary Fund (IMF) has also recognized Ripple as a key player in facilitating cross-border payment.

Ripple has continued to garner significant attention from key players in the payment industry. Using the XRP Ledger (XRPL) to facilitate fast and cost-effective payments has been seen as a game-changing innovation. Persistent recognitions like these further boost Ripple’s visibility and create more chances for global adoption.