XRP News Today: Malaysia's Central Bank Sees XRP as Cash Replacement, Eyes Digital Future

Malaysia’s central bank has identified Ripple’s XRP and Bitcoin as potential alternatives to traditional cash and bank deposits in future payment systems. According to a July 2025 working paper on modern money and digital currencies by Bank Negara Malaysia, private tokens like XRP may be widely used as a means of payment outside the banking system, potentially replacing cash or bank deposits if adopted at scale [4]. This acknowledgment marks a significant shift, as the central bank is not merely considering XRP as a speculative asset but as a viable financial instrument for real-world transactions. The report also highlights Project Mawar, an initiative under which the central bank is exploring the use cases of a central bank digital currency [5].

The document categorizes XRP and Bitcoin alongside other monetary aggregates such as M1, M2, and M3, illustrating debtor-creditor relationships within the financial system. It outlines how decentralized tokens could serve as alternatives to traditional monetary instruments. However, the report also notes that private tokens must overcome significant barriers to complement or substitute the current payment system. Without centralized intermediaries, such platforms would require substantial liquidity to enable efficient cross-cryptocurrency settlements [5]. These challenges underscore the complexity of integrating decentralized tokens into mainstream financial infrastructure, despite their theoretical appeal.

The inclusion of XRP in this discussion is notable, given the token’s recent market performance and institutional developments. XRP’s market capitalization has grown significantly, reaching nearly $180 billion and surpassing several well-known companies in terms of valuation. This growth has been driven by both price appreciation and broader ecosystem developments, including the resolution of a long-standing legal dispute with the U.S. Securities and Exchange Commission and strategic acquisitions [1]. Ripple also introduced an institutionally-focused stablecoin, RLUSD, in late 2024, further expanding its portfolio [1]. These moves have enhanced XRP’s utility and adoption, with some entities now accumulating the token for strategic reserves.

Despite these developments, XRP has faced recent volatility. In August, the token surged nearly 9% during a single trading session but subsequently retreated, with traders closely monitoring whether the $3.00 support level would hold. On-chain settlement volumes on the XRP Ledger increased by 500%, signaling potential institutional adoption, yet ongoing whale distribution suggests uncertainty in market sentiment [3]. Meanwhile, Bitcoin and Ethereum continue to face skepticism for real-world use due to high volatility and scalability issues, according to European payment research. This contrast positions XRP as a more viable option for institutional adoption, particularly given its faster transaction speeds and lower fees [4].

The Malaysian central bank’s acknowledgment of XRP and Bitcoin as possible payment instruments reflects a broader global trend of financial institutions exploring digital alternatives to traditional systems. With the central bank actively considering XRP’s role in future payment systems, this development could influence other institutions to reassess the token’s potential. Analysts suggest that if Ripple can secure approval for spot XRP ETFs and navigate regulatory hurdles, the token could see further institutional demand [6]. However, the report also emphasizes the challenges decentralized tokens face in replacing traditional payment systems, including liquidity requirements and scalability constraints. These factors will be crucial in determining XRP’s long-term viability as a mainstream payment instrument.

Source:

[1] Ripple's XRP Is Now a Top 100 Global Asset (https://cryptopotato.com/ripples-xrp-is-now-a-top-100-global-asset-heres-what-it-means/)

[2] Could Ripple (XRP) Deliver 10x Returns? (https://finance.yahoo.com/news/could-ripple-xrp-deliver-10x-132000630.html)

[3] XRP Surges 9% Before Pullback Caps Rally Near $3 (https://www.coindesk.com/markets/2025/08/23/xrp-surges-9-before-pullback-caps-rally-near-usd3)

[4] XRP Latest News: Malaysia's Central Bank Eyes Ripple (https://thetradable.com/crypto/xrp-latest-news-malaysias-central-bank-eyes-ripple-token-as-bank-deposit-alternative-ig--m)

[5] XRP Wins Central Bank of Malaysia's Major Acknowledgement (https://timestabloid.com/xrp-wins-central-bank-of-malaysias-major-acknowledgement/)

[6] 1 Key Reason Why XRP Lags Behind Ethereum and Other (https://www.theglobeandmail.com/investing/markets/markets-news/Motley%20Fool/34348766/1-key-reason-why-xrp-lags-behind-ethereum-and-other-top-cryptocurrencies/)