|
Getting your Trinity Audio player ready...
|
- XRP Ledger cited in BRICS report as an escrow model example.
- Report stresses potential for an in-house BRICS smart contract system.
- Smart contracts positioned as central to future trade finance.
Stay ahead with real-time updates and insights—Join our Telegram channel!
The XRP Ledger (XRPL) has been directly cited in an official BRICS economic report on blockchain and trade finance, drawing attention from the crypto community. Researcher SMQKE highlighted the reference, emphasizing that the citation demonstrates BRICS’ consideration of XRPL’s escrow model in its exploration of digital settlement infrastructure.
XRPL Cited in Context of Smart Contracts
The report, which examines how distributed ledger technology could improve cross-border trade settlements, outlines the benefits of smart contracts and escrow-based systems. Specifically, it cites “XRP Ledger, 2020” when discussing how funds can be stored in a virtual escrow account to guarantee availability upon contract execution.
This aligns with the broader goals of BRICS to reduce risks in national currency trade settlements without necessarily creating a brand-new cryptocurrency. Instead, the report highlights smart contracts as key to automating processes, verifying criteria, and enabling payments through external verification mechanisms like oracles.
Debate on Proprietary BRICS Blockchain
Following SMQKE’s post, another user, Neo, noted that while XRPL is referenced, the same report stresses the need for an “in-house smart contract system.” This suggests BRICS may be considering developing its own dedicated blockchain infrastructure, either from scratch or as a permissioned adaptation of an existing framework.
Such an approach would give BRICS greater control over governance, compliance, and customization, while still acknowledging the role of systems like XRPL in shaping technical discussions.
Implications for Global Trade Finance
The report underscores how smart contracts could transform trade finance by reducing settlement times, cutting costs, and minimizing disputes. Importantly, BRICS frames this innovation as a way to avoid reliance on Western-dominated financial settlement rails.
Stay ahead with real-time updates and insights—Join our Telegram channel!
While the reference to XRPL is only one example among several, its inclusion signals recognition of the ledger’s real-world escrow capabilities. Whether BRICS builds its own closed system or leverages existing technologies, the mention of XRPL reflects its growing visibility in global discussions on blockchain-based trade finance solutions.
Also Read: $243M in 9 Assets: XRP Ledger Tops RWA Charts With High-Value Tokenizations
The citation of the XRP Ledger in an official BRICS report highlights its relevance in discussions about smart contracts and digital settlement infrastructure. However, the parallel push for an in-house system suggests BRICS is unlikely to adopt XRPL directly, instead opting for a customized framework inspired by proven blockchain models.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
I’m a crypto enthusiast with a background in finance. I’m fascinated by the potential of crypto to disrupt traditional financial systems. I’m always on the lookout for new and innovative projects in the space. I believe that crypto has the potential to create a more equitable and inclusive financial system.
