Unconfirmed reports suggest that India and the United Arab Emirates are using XRP instead of the US dollar for oil transactions, potentially challenging the petrodollar system.
Ripple recently achieved some success in its legal battle with the SEC and formed a strategic partnership with the UAE’s DIFC Innovation Hub to boost blockchain adoption.
The partnership aims to bring together emerging developers and over 1,000 technology companies to foster blockchain innovation at early stage and large traditional institutions.
The rumors are spreading. Unconfirmed reports suggest that India and the United Arab Emirates (UAE) may ditch the US dollar and switch to XRP. As reported by multiple media outlets, the two countries are apparently using XRP to trade crude oil. German cryptocurrency media outlet BTC-ECHO also reported the news and posted on X.
Source: X
Watcher Guru writes that the transactions will be conducted in conjunction with the “XRP Ledger System CryptoTrading Fund (CTF),” allowing participants to earn so-called CFT tokens when using the system.
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Cryptopolitan also said that “the transaction was executed through the XRP ledger system,” with both parties making payments in their respective currencies.
This is highly speculative, but if confirmed, it would be a significant development. The US dollar has been the primary means of trading oil since the 1970s, a system popularly known as the petrodollar system, and is one of the reasons for America’s economic dominance on the world stage.
Rumors have been floating around the internet for a while about moves to move away from US Dollar trading, especially among the BRICS nations. Recently, Russia moved to legalize cryptocurrency mining and trading with a law signed by President Putin last week.
Ripple Gains Momentum in MENA Region
Just a week ago, Ripple achieved a partial victory in its long-running legal battle with the U.S. Securities and Exchange Commission (SEC). The final ruling by Judge Analisa Torres fined Ripple $125 million (AUD$191 million), far less than the more than $1 billion (AUD$1.5 billion) the SEC had originally sought.
In a more practical and concrete development related to the Middle East, Ripple announced a partnership with the United Arab Emirates-based DIFC Innovation Hub to “accelerate blockchain and digital asset innovation” in the country.
According to the statement, Ripple’s new partnership with the DIFC Innovation Hub aims to accelerate the adoption of blockchain and cryptocurrencies.
The collaboration connects emerging developers to a vibrant ecosystem of over 1,000 technology companies, venture capital firms and regulators within the region’s largest innovation community, targeting both early-stage companies and large traditional institutions to effectively position advanced blockchain applications and use cases.
Related: Circle CEO says iPhone users will soon be able to use USDC for payments
Ripple CEO Brad Garlinghouse was understandably pleased with the development, saying:
“The UAE is one of the most advanced jurisdictions globally when it comes to providing regulatory clarity for licensed firms to offer virtual asset services and fostering an environment in which the next generation of financial innovation can thrive. Our partnership with the DIFC Innovation Hub is expected to accelerate the adoption of blockchain technology in the region, as XRPL remains the leading blockchain for startups and scaleups in the region building real-world use cases.”
Ripple CEO Brad Garlinghouse
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