XRP and XLM Seen as Strong Fits for Central Bank Reserve Standards

Christine Lagarde, president of the European Central Bank, recently talked about which crypto assets could meet the strict rules required by central banks.

This comes as central banks are carefully checking which coins are safe to hold as reserves. An industry leader has pointed out the XRP and Stellar (XLM) meetings the institutional standards.

ECB President Says Bitcoin Won’t Be Used by Central Banks

According to a recent X post by Versan Aljarrah, founder of Black Swan Capitalist, Christine Lagarde spoke about which digital assets could be used by central banks.

She said that central banks need reserve assets to be easy to use, safe, and free from any links to money laundering. Lagarde was clear about Bitcoin, saying she is sure the flagship crypto will not be included in the reserves of any central bank. 

Her position reflects a broader ECB consensus. Reserve assets must demonstrate operational reliability, regulatory clarity, and predictable settlement behavior. Lagarde’s statement means that many digital assets, including Bitcoin, do not always meet these rules.

This perspective does not dismiss the entire crypto sector. Rather, it emphasizes the qualities central banks expect from financial tools held at the sovereign level. Bitcoin critics had once argued that speculative assets like Bitcoin do not prioritize these qualities.

At the same time, the ECB president has equally warned of stablecoin liquidity risks in Europe, saying that unregulated might destabilize financial markets across the EU.

XRP and XLM Are Viewed as Reliable Options for Central Banks

In his X post, Aljarrah pointed out that XRP and XLM are top digital assets that can meet ECB’s institutional rules. The companies behind them, Ripple and Stellar, have spent years working with global organizations, central banks, and regulators.

Ripple and Stellar had work to make sure their digital assets can handle liquidity needs and cross-border payments and also follow legal requirements and standards. 

Aljarrah says XRP and XLM are involved in international talks, including work with the International Monetary Fund (IMF). These efforts focus on transparency, legitimate liquidity sourcing, and risk-managed settlement. These priorities match the expectations central banks have for reserve-level assets.

Growing Policies Boost the Case for XRP and XLM

The importance of compliant digital networks has grown in today’s policy environment. Earlier this year, the U.S. announced a plan for a strategic digital reserve that could include XRP, showing government support for regulated digital payment networks.

If Europe or other regions create similar policies, assets like XRP and XLM could gain more acceptance and use by major financial institutions. This would be a big step toward bringing digital assets into the formal financial system.