The World Bank released a report examining blockchain interoperability that references Ripple's Interledger protocol and XRP cryptocurrency, describing the payment technology as "very promising" for enabling currency exchanges across different networks. The document marks a notable acknowledgment from the international financial institution of the San Francisco-based payment company's infrastructure approach.
What to Know:
- The World Bank report on blockchain interoperability highlights Ripple's Interledger protocol and XRP's role as a bridge currency for cross-border transactions
- Ripple recently partnered with South Africa's Absa bank to provide cryptocurrency custody services, expanding its presence in African markets
- XRP trades at $2.40, down 3% in 24 hours, as the company continues implementing ISO 20022 payment standards
World Bank Report Examines Ripple Technology
A World Bank report on blockchain interoperability examined Ripple's Interledger protocol, noting its potential for the payments sector. The report was shared by crypto commentator SMQKE, who pointed to the bank's assessment of the technology's capability to facilitate currency exchanges.
The World Bank stated the Interledger routes packets of value similarly to how the internet routes information packets.
The protocol addresses interoperability challenges by developing settlement rails for both cryptocurrency and traditional payment systems. XRP functions as a central component in this infrastructure.
Ripple has adopted the ISO 20022 messaging standard, an international protocol for electronic data exchange between financial institutions. The company positions XRP as a bridge currency that enables users to send and receive different currencies through its network. In the Interledger system, XRP acts as a router connecting senders and receivers using different currencies, whether Bitcoin or traditional fiat currencies like U.S. dollars.
Expanding Presence in African Markets
Ripple announced a partnership with Absa, a South African financial institution, to provide cryptocurrency custody services. Bill Morgan, an attorney who follows XRP developments, suggested the arrangement extends beyond basic custody functions and may connect to broader demand for Ripple's payment infrastructure across Africa.
The company previously partnered with Chipper Cash, an African financial technology firm, to integrate its payment technology. Ripple also collaborated with Yellow Card to introduce its RLUSD stablecoin to users across the continent. SMQKE noted Ripple had previously worked with the World Bank on modernizing global payment clearing infrastructure.
Documents shared by SMQKE indicate Ripple has established connections within the European financial system.
The company maintains partnerships with several banks, which some XRP supporters view as potential pathways for broader adoption in global financial networks.
Key Terms
The Interledger protocol serves as an open protocol suite for sending payments across different ledgers and payment networks. ISO 20022 represents a global standard for financial messaging that major payment systems are adopting for improved data exchange. A bridge currency acts as an intermediary in currency exchanges, allowing conversion between two currencies that do not have a direct exchange market.
Cryptocurrency custody services involve the storage and security of digital assets on behalf of institutional clients. Stablecoins are cryptocurrencies designed to maintain a stable value, typically pegged to fiat currencies like the U.S. dollar.
Closing Thoughts
The World Bank's recognition of Ripple's technology in its interoperability report comes as the company expands its footprint in emerging markets, particularly Africa. XRP currently trades at $2.40, reflecting a 3% decline over 24 hours, according to CoinMarketCap data.