• The State Bank of Pakistan (SBP) published its annual Financial Stability Review for 2022, which included a section highlighting the risks and opportunities presented by cryptocurrencies and crypto assets.
• SBP noted Ripple’s XRP cryptocurrency as an example of “encouraging work” in supporting cross-border payments, despite the nation’s current crypto trading ban.
• The report acknowledges the potential benefits of the underlying blockchain technology, such as enabling fast and inexpensive cross-border payments.
State Bank of Pakistan Publishes Financial Stability Review
Pakistan’s State Bank published its annual Financial Stability Review for 2022 in July, which assessed the risks and opportunities presented by cryptocurrencies and crypto assets. Despite a nation-wide ban on cryptocurrency trading, the report recognized Ripple’s XRP cryptocurrency as an example of „encouraging work“ in supporting cross-border payments.
Ripple’s XRP Recognized for Cross-Border Payments
The report highlighted Ripple’s efforts to leverage their XRP Ledger to improve international payments and settlements. Furthermore, while some encouraging work is being conducted to support cross-border payments (e.g., through Ripple’s XRP), it still remains a minuscule fraction compared to the volume of global payments overall.
Potential Benefits Of Blockchain Technology Acknowledged
The Financial Stability Review also acknowledged the potential benefits that blockchain technology can bring, such as faster and cheaper cross-border payments. However, SBP did reiterate that they do not authorize or license any cryptocurrency activity in Pakistan at this time.
Openness To Innovations Suggested
SBP’s recognition of Ripple’s efforts suggests openness to new financial technologies that could benefit both local businesses and consumers worldwide.
While cryptocurrencies remain illegal in Pakistan for now, financial institutions may increasingly recognize their potential applications moving forward with further development work done by organizations like Ripple on projects like XRP Ledger.