The Researcher Presents Documentation to Prove XRP is for Banks

In a recent tweet, cryptocurrency researcher SMQKE responded to a post by Panos Mekras, co-founder of Anodos Finance, asserting that XRP is designed for banks. In a brief yet direct statement, SMQKE wrote, "Indeed, XRP IS FOR BANKS. It has been documented." Along with this response, he shared several documents to support his claim regarding the role of XRP in financial institutions.

Mekras previously stated that "XRP is designed as a P2P digital asset and XRP Ledger as a P2P network." His post argues that while XRP and XRP Ledger were originally developed for peer-to-peer use, Ripple has shifted its focus towards institutional adoption. Mekras emphasizes that this change does not alter the decentralized nature of XRP Ledger but affects how Ripple positions its product. Documentation Highlighting the Use of XRP by Organizations In response, SMQKE presented a series of documents outlining Ripple's business model and the integration of this company with financial institutions. A document states that "Ripple's business model focuses on the digital payment protocol, XRP Ledger," describing how financial institutions must integrate their systems with the XRP Ledger to utilize Ripple's services. Another document emphasizes that "this integration allows them to send and receive payments seamlessly using Ripple's native digital currency, XRP." A private document has examined Ripple's cross-border payment strategy, explaining that "Ripple intends to use XRP as a 'bridge currency' to facilitate cheaper and faster transactions." This document also states that Ripple provides banks with software access to its network, allowing them to conduct transactions without the need for a centralized accounting system. The document also notes that Ripple's xRapid product enables money transfers almost instantly using XRP. Ripple's Shift Towards Financial Institutions Another excerpt mentions Ripple's transition towards organizational adoption, stating that the company "pivoted to cross-border payments in 2015." The excerpt details the regulatory challenges faced by Ripple at that time, including compliance with the U.S. Bank Secrecy Act and securing a BitLicense from the State of New York for "the sale of the cryptocurrency asset XRP to institutions." The document also states that Ripple has "shifted towards financial institutions to outsource part of its regulatory compliance operations: serving banks rather than individuals." Comments from both sides reflect differing views on the anticipated use case of XRP. While Mekras acknowledges that Ripple has shifted towards banks, he still asserts that XRP was created for peer-to-peer transactions. However, SMQKE pointed out official documents highlighting the integration of XRP with financial institutions, reinforcing his statement that XRP is designed for banks.