- In response to European Commission Consultation by FMLC, a report has identified XRP as a bridge currency.
- The report responds to the Consultation and comprises the FMLC’s comments mainly on the crypto assets classification.
- FMLC’s report acknowledged Ripple’s XRP as an exchangeable crypto asset.
- XRP, designed as a bridge currency will allow faster settlement of cross-border payments for financial institutions, according to the report.
In response to European Commission Consultation by FMLC, a report has identified XRP as a bridge currency. The report is titled ‘Taxonomical Approaches to Cryptoassets.’ European Commission published a document regarding E.U Framework for markets in crypto assets. Hence, this draft of the report responds to the Consultation and comprises the FMLC’s comments mainly on the crypto assets classification.
Financial Markets Law Committee(FMLC) plays the role of identifying legal uncertainty issues regarding risks associated with the financial markets. FMLC addresses issues regarding the same.
In a response document to European Commission Consultation by FMLC, XRP is mentioned as a bridge currency. WOW!!!
Some of the committee members are from Bank of England, Goldman Sachs, HSBC, JP Morgan and morehttps://t.co/rduLQmXdtr pic.twitter.com/87QiMYWpw6
— Steven Bull From the Diep (@DiepSanh) May 29, 2020
XRP’s mention in the report came to light when an XRP fan ‘@DiepSnah’ shared the same on Twitter earlier on May 29. He also mentioned in his tweet that few of the committee members are from the bank of England, Goldman Sachs, JP Morgan, etc.
XRP enhances faster cross-border payments settlement, according to report
The report acknowledged Ripple’s XRP as an exchangeable crypto asset. It added that XRP behaves as a bridge currency to other currencies.
Furthermore, the report, however, brings to our notice that an exchangeable crypto asset has roles to play in anti-money laundering. Besides that, such a crypto asset can have repercussions for preventing terrorism financing, according to the report.
Ripple’s crypto, designed to act as a bridge currency, will allow faster settlement of cross-border payments for financial institutions. It also enhances ease of use along with the exploitation of its consensus mechanism, the report outlined.
Alongside XRP, the report mentioned the two most popular crypto assets, Bitcoin and Ethereum. In short, FMLC, in this response document, has attempted to classify crypto assets based on each of their function.