Fed Chairman Highlights XRP's Potential in Cross-Border Payments

A recent research paper co-authored by Federal Reserve Chairman Kevin Warsh has shed light on the potential of XRP in facilitating cross-border payments.

The paper, which was published in 2022, discussed the possibility of a Special Drawing Rights-based stablecoin that can be exchanged for any national currency. It noted that such an arrangement could resemble the cross-border payments system operated by Ripple using XRP.

XRP serves as a bridge currency in Ripple's service, allowing customers to swap the crypto asset for their desired currency. This has more advantages over stablecoins since there isn't one consensus stablecoin to settle these transactions.

The Fed's consideration of private sector infrastructure, including Ripple's XRP, is seen as bullish for the altcoin. With Ripple stepping into the trillion-dollar market through its partnership with DTCC, some analysts believe that XRP could benefit from this development.