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State Bank of Pakistan acknowledges XRP’s potential. Details inside…

2min Read

The State Bank of Pakistan’s acknowledged Ripple’s role in making cross-border payments easier. However, a cautious stance also existed considering the not-so-favorable past that looms around the cryptocurrency market.

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  • The State Bank of Pakistan reflects on the evolving regulatory attitudes toward cryptocurrency integration.
  • While embracing innovation, the SBP maintains vigilance over potential risks tied to digital assets.

In its 2022 financial stability report, the State Bank of Pakistan [SBP] recognized the emerging significance of Ripple and its digital asset XRP in the realm of global payments. The SBP described this development as “promising work,” particularly in the context of cross-border transactions.

The acknowledgment surely reflects the evolving cryptocurrency dynamics and its integration into mainstream finance. However, the report also underscores SBP’s cautious approach and concerns over potential risks associated with digital assets.

State Bank of Pakistan recognizes XRP’s role in cross-border transactions

The SBP’s recognition of Ripple and XRP’s role in facilitating cross-border payments comes amid the broader adoption of cryptocurrencies in traditional financial systems. The acknowledgment signals an increased acceptance of the changing financial landscape by regulatory institutions.

However, the SBP remains vigilant about the potential exploitation for money laundering and terrorist financing. It referenced infamous cases like the Silk Road dark web marketplace and the volatile nature of the crypto industry. These included instances such as the collapse of the FTX crypto exchange and Terraform Labs’ projects.

Notably, the SBP’s positive recognition of XRP’s capabilities was significant. This was the case given that the institution didn’t endorse any cryptocurrency in the past.

While the SBP acknowledged the potential benefits of cryptocurrencies like XRP, it remains mindful of the inherent risks they entail. The report’s stance reflected a balance between embracing innovation and safeguarding financial systems from potential threats. This approach resonates in a landscape where cryptocurrencies are gradually being integrated into mainstream financial discussions.

Contrasting with the SBP’s cautious stance, the global cryptocurrency market witnessed the rapid ascent of stablecoins. A recent study revealed that stablecoins have remarkably gained market share throughout 2022.

The report highlights that over $11 trillion worth of transactions were settled via stablecoins on-chain. This volume has even surpassed the payment volumes of PayPal and reached a substantial percentage of the volumes processed by Visa.

The traction of stablecoins underscores the increasing mainstream acceptance of digital assets in various financial operations.

At press time, XRP exchanged hands at $0.5169, indicating a decline from the peaks achieved amid Ripple’s legal battles with the US Securities and Exchange Commission (SEC).


Saman Waris works as a News Editor at AMBCrypto. She has always been fascinated by how the tides of finance and technology shape communities across demographics. Cryptocurrencies are of particular interest to Saman, with much of her writing centered around understanding how ideas like Momentum and Greater Fool theories apply to altcoins, specifically, memecoins. A graduate in history, Saman worked the sports beat before diving into crypto. Prior to joining AMBCrypto 2 years ago, Saman was a News Editor at Sportskeeda. This was preceded by her stint as Editor-in-Chief at EssentiallySports.
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