According to a paper from Ural Federal University, the Bank of Russia may use the Ripple network or XRP for cross-border transactions. The paper highlights that in 2018, the bank’s Novosibirsk innovative laboratory conducted research on testing the possibility of cross-border settlements using the Ripple platform. Let’s discuss whether the Bank of Russia is indeed eyeing the popular cryptocurrency to evade Western sanctions.
Will the Bank of Russia Use XRP For Cross-Border Transactions?
The Bank of Russia’s testing of the Ripple Network for transactions may be a response to SWIFT’s 2017 blockchain tests, which the report highlights. The tests could be a way for Russia to build its own blockchain infrastructure. The move does not mean that the bank will use XRP for cross-border transactions. The paper states, “the Ripple platform can be considered as the basis for starting work on creating a system of cross-border settlements.“
However, even if the Bank of Russia does not use XRP for cross-border transactions, its tests are a testament to the network’s incredible capabilities. XRP is already one of the most utilized assets for cross-border remittances. Banks in Japan, in particular, have been very bullish on the XRP Ledger. We may see a similar pattern emerge in the US as well.
Another reason why the Bank of Russia may not use XRP is that Ripple is an American firm, and Russia may have safety concerns. They will most likely build their own blockchain infrastructure, which may be based on the XRP Ledger.
Russia has been looking at cryptocurrencies to evade Western sanctions. Along with Russia, Iran, and North Korea have also begun trading with crypto assets to escape Western eyes.
Also Read: Time To Hold, Buy, or Sell XRP Now? Here’s the Analysis
XRP’s solid foundations have found applause in several nations. The asset will most likely continue its adoption curve over the coming years. With the SEC vs. Ripple lawsuit put to rest, the road seems to be clear of any hurdles.