XRP News Today: UK Prioritizes Stablecoin Regulation Over XRP National Infrastructure

Ripple has been actively engaged in UK policy discussions, submitting evidence to parliamentary committees and participating in debates on digital asset regulation. However, claims of "official recognition" for XRP as national infrastructure are overstated. While Ripple's involvement in UK regulatory frameworks is notable, no formal endorsement or binding decision has been made by the UK government or Bank of England to designate XRP as part of the country's critical payment systems XRP in the UK Spotlight: Could Ripple Win Government Favor?^[1]. The UK's approach to digital assets emphasizes technology-neutral regulation, focusing on activities rather than specific tokens. This aligns with the Financial Services and Markets Act 2023, which prioritizes oversight of stablecoins and tokenized payments while avoiding favoring individual assets .

The likelihood of XRP achieving formal recognition as national infrastructure remains extremely low, with experts estimating a probability below 10%. The UK's critical payment systems, such as CHAPS and RTGS, are centrally managed and audited, whereas XRP's decentralized, volatile nature conflicts with these requirements XRP in the UK Spotlight: Could Ripple Win Government Favor?^[1]. Additionally, the Bank of England's focus on its digital pound project and enhanced RTGS system further reduces the appetite for integrating external tokens. Political and regulatory risks, including concerns over private control of payment infrastructure, also hinder such a move XRP in the UK Spotlight: Could Ripple Win Government Favor?^[1].

Ripple's influence in the UK is more likely to manifest through partnerships and infrastructure collaboration. The company's cross-border payment expertise positions it to support regulated corridors for remittances and international settlements under FCA oversight. This aligns with the UK's push for blockchain-driven efficiency in finance, though it falls short of recognizing XRP as sovereign infrastructure XRP in the UK Spotlight: Could Ripple Win Government Favor?^[1]. Recent developments, such as the UK-US Transatlantic Taskforce for Markets of the Future, highlight efforts to harmonize digital asset regulation. Ripple's Managing Director, Cassie Craddock, emphasized the taskforce's focus on stablecoins, tokenization, and cross-border access, areas where XRP could play a role as a settlement layer XRP Supporters Bullish on UK-US Taskforce for Digital Asset Growth^[4].

The UK's regulatory framework, including the Financial Services and Markets Act 2023, establishes a phased approach to cryptoasset regulation, prioritizing stablecoins in the first phase. While this creates opportunities for innovation, it also underscores the government's preference for neutrality. Ripple's submission to UK committees highlights the potential of blockchain to enhance financial inclusion and reduce transaction costs but stresses the need for tailored, risk-based regulation Committees - UK Parliament^[3]. The firm advocates for a holistic framework that differentiates between B2B and B2C cryptoassets, ensuring market certainty while fostering innovation Committees - UK Parliament^[3].

Despite skepticism, some analysts suggest a 60% likelihood of mainstream institutions adopting XRP within the next few years, driven by its endorsement as a payment tool. However, this scenario depends on resolving market uncertainties, such as leadership moves (e.g., co-founder sales) and price volatility UK Parliament Recognizes Ripple's $XRP for Global Payments^[2]. Ripple's broader vision includes a Central Bank Digital Currency (CBDC) as a publicly provided infrastructure, enabling private-sector innovation. A successfully implemented CBDC could enhance micropayments, programmable transactions, and financial inclusion, particularly for unbanked populations Committees - UK Parliament^[3].