Ripple joins forces with BIS in cross-border payments initiative

The Bank for International Settlements (BIS) has introduced a cross-border payments interoperability and extension (PIE) task force, with Ripple, the blockchain-based digital payment network, being one of its notable participants. XRP, a cryptocurrency used by Ripple in its On-Demand Liquidity (ODL) solution, was recently classified as not a security.

The BIS, an international financial institution owned by member central banks, released a summary of the PIE task force’s meeting on May 11, which outlines the task force’s commitment to enhancing cross-border payments and achieving the quantitative goals established by the G20 in this area.

The Financial Stability Board (FSB), an international organization dedicated to the global financial system, presented priority actions for achieving G20 targets in February 2023. 

It emphasized accelerating transaction speed, reducing costs, and enhancing transparency, safety, and security in cross-border transactions. 

The FSB collaborated with the Committee on Payments and Market Infrastructures (CPMI) and other relevant international organizations to develop a comprehensive Roadmap to address these challenges, which G20 Leaders endorsed in November 2020.

The report indicates that the CPMI/Payments Market practice group joint task force is expected to deliver the final version of ISO 20022 by October 2023.

Ripple, Mastercard, and SWIFT are collaborating with the BIS to enhance cross-border payment interoperability. The BIS emphasizes the need for global cooperation, with progress depending on both public and private stakeholders.

Despite being included in the G20 payments initiative task force, Ripple is involved in a legal dispute with the US Securities and Exchange Commission (SEC). The regulator has requested a review of the recent court decision labeling XRP a commodity through an appellate court, despite the unresolved case, which leaves Ripple’s future uncertain.