Crypto Market News: While the International Monetary Fund (IMF) now began helping governments across the world develop Central Bank Digital Currencies (CBDCs), XRP token had long been in the eyes of the international financial institution. The International Monetary Fund had on Monday revealed it was developing a global platform to facilitate CBDC interoperability. On the other side, Ripple Labs had already been helping many companies and central banks explore the CBDC use case. This comes despite the setback to XRP token holders, even as the wait for the Summary Judgement drags on.
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Earlier, CoinGape reported that Ripple Labs Inc stitched a partnership with Colombia’s central bank Banco de la República to explore blockchain technology use cases. However, it is the United States market that is strategically important for Ripple, to be able to expand to full scale. Yet, it is unclear as to whether the US Federal Reserve’s FedNow service would in future integrate crypto payments and thus XRP.
When IMF Recognized XRP As Virtual Currency
In a 2018 presentation on ‘The Regulation of Virtual Currencies,’ the IMF recognized XRP in the virtual currencies category, describing it as “a coin issued by Ripple as the digital asset for payments.” Interestingly, the IMF also mentioned the virtual currency’s capabilities in the cross-currency border payments space, which is exactly what the IMF is trying to solve for the central banks. XRP was described in the presentation as:
“(XRP) is the token used to carry out cross-border, cross-currency payments through the Ripple network.”
The IMF also categorized virtual currencies as assets “not issued by a government,” while CBDCs are central bank issued. Ripple’s strength in cross border payments could be put to use in the IMF project, irrespective of the XRP token.
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