Ripple is mentioned in the UK Parliament, but what role can XRP play in national finance?

A recent report indicates that the UK Parliament is discussing Ripple and XRP as candidates for national infrastructure. Although Ripple has provided evidence to UK committees and engaged in policy debates regarding digital assets, claims of "official recognition" seem somewhat exaggerated.

The evidence and mentions from Parliament are just a part of the industry's standard interaction — not an official endorsement. For XRP to be officially recognized as national infrastructure, the UK government or the Bank of England would need to make a binding decision. This is still far from the current reality.

The presence of Ripple in the UK policy circles

Ripple has actively participated in regulatory discussions in the United Kingdom. The company has provided evidence to the Treasury and DCMS committees, and is also registered with the Financial Conduct Authority to conduct money service activities.

Ripple promotes XRP Ledger as a fast and efficient payment network for cross-border transactions. However, this involvement positions Ripple merely as a contributor to policy — not as a candidate for national financial infrastructure.

What does "official recognition" really mean for XRP

To achieve the status of "national infrastructure", XRP will need to meet strict criteria. This includes having regulatory oversight, system risk assessment, and alignment with the priorities of the Bank of England.

The important payment systems of the United Kingdom, such as CHAPS and the Real-Time Gross Settlement system (RTGS), are all managed and audited in a centralized manner. A decentralized and highly volatile cryptocurrency like XRP is not suitable for this model.

The United Kingdom's policy leans towards technological neutrality.

The 2023 Financial Services and Markets Act has empowered regulators to oversee stablecoins and tokenized payments. Current attention is focused on the fundamental operations, rather than individual assets.

The Bank of England and FCA are building legal frameworks for stablecoins backed by fiat money — not for speculative tokens. Their strategy supports innovation but does not clearly specify who will be the winner.

This makes it unlikely for the United Kingdom to designate XRP with special status.

The role of Ripple may increase — without the validation of XRP

The influence of Ripple in the United Kingdom could increase through partnerships and infrastructure collaboration. The company could support regulated corridors for remittances or cross-border payments under the supervision of the FCA.

This collaboration aligns with the government's efforts to promote blockchain-based financial efficiency. However, this is still not enough to recognize XRP as a sovereign or important infrastructure.

Why official confirmation is uncertain

Many factors make official recognition difficult. The United Kingdom prioritizes regulatory stability and sovereignty control over payment systems. The volatility of XRP, decentralized governance structure, and legal history in the U.S. create policy risks.

Moreover, the Bank of England's focus on the digital pound project and the improved RTGS system leaves little room for the adoption of external tokens.

Politically, it is unacceptable to entrust core payment channels to a blockchain controlled by private or foreign entities.

What if that happens?

If the United Kingdom recognizes XRP as part of its financial infrastructure, this will have significant implications. XRP could gain international regulatory clarity, access for institutions, and legitimacy in the market. Ripple will solidify its position as a trusted payment partner.

However, governance challenges will arise. Managers may require access to or the ability to audit the auxiliary ledgers — this will change the decentralized nature of XRP.

Realistic Prospects

A more likely future is that Ripple continues to operate as a private infrastructure partner, rather than becoming a public backbone. The company could shape policy, expand corridors, and provide liquidity that complies with regulations — without XRP becoming a government-recognized currency.

In reality, the likelihood of the UK Parliament officially supporting XRP is very low. However, Ripple's regulatory collaboration will still have a significant impact on shaping the future rules of digital finance.

Mr. Teacher