The Central Bank of Malaysia (BNM) has published a working paper discussing the potential of private tokens like XRP in the future.
The Bank's Working Paper and Its Influence on Discourse
According to BNM’s working paper (WP3/2025) ‘Fundamentals of Modern Money and its Application to Central Bank Digital Currency’, there is a growing interest in exploring how private tokens may serve as alternatives to traditional bank deposits. This paper has sparked a discussion about the evolution of digital tokens within conventional financial systems.
XRP's Advantages as a Payment Medium
BNM's reference to XRP highlights its strategic importance, given that the XRP Ledger is designed for low-cost, high-throughput payments with near-instant settlements, providing a fitting example for analysis.
Contrast with Bitcoin and Ethereum
The paper delineates a clear contrast between XRP and other prominent cryptocurrencies like Bitcoin and Ethereum. While these are seen as store-of-value assets, their high volatility and limited throughput make them less suited for regular payment functions.
BNM's working paper signals Malaysia's commitment to exploring the potential of tokenized financial instruments and paves the way for further collaboration in this domain.
