Versan Aljarrah, founder of Black Swan Capitalist, recently shared a video featuring the president of the European Central Bank (ECB), Christine Lagarde, discussing the suitability of various digital assets for central bank reserves.
His post reignited a long-standing debate concerning which networks meet the stringent standards global institutions expect from reserve-level instruments. Aljarrah highlighted XRP and XLM as the primary contenders, referencing Ripple and Stellar's extensive work with multinational organizations over the years.
The ECB says Bitcoin isn’t fit for reserves. That’s fine. @Ripple and @StellarOrg have been working with the IMF for years. $XRP and $XLM are already building the infrastructure the world will use, and it’s happening quietly but decisively. pic.twitter.com/z3O8HRiSAQ
— Black Swan Capitalist (@VersanAljarrah) November 13, 2025
Lagarde’s Assessment and Its Relevance
In the shared video, Lagarde addressed the question of whether central banks should consider including Bitcoin in their reserves. She stated that reserves must be "liquid, secure, and safe" and emphasized the importance of avoiding any suspicion of money laundering or criminal activity.
Lagarde made her position unequivocal, stating, "I am confident that bitcoins will not enter the reserves of any of the central banks." Her comments reflect a consensus view within the ECB’s governing bodies that reserve assets must possess specific qualities, including operational reliability and regulatory clarity.
This distinction is crucial for digital assets aspiring to achieve relevance within formal financial systems. The ECB did not dismiss the broader cryptocurrency sector. However, it indicated that assets lacking predictable settlement behavior and robust compliance frameworks do not meet the requirements of sovereign institutions.
Bitcoin's current structure does not prioritize these specific areas, creating a natural divergence between assets primarily used for speculation and networks engineered for regulated financial applications.
Why the Environment Favors XRP
Lagarde's remarks align closely with the core principles that have guided Ripple's development of XRP since its inception. Ripple has consistently focused on liquidity management, institutional settlement, and fostering cooperation with policymakers.
The company's ongoing work with the International Monetary Fund (IMF), central banks, and financial regulators demonstrates a deliberate strategy to meet the rigorous standards that official institutions apply to cross-border financial infrastructure. The Stellar Lumens (XLM) network also actively participates in international discussions, supporting similar objectives. Aljarrah specifically noted that both Ripple and Stellar have been collaborating with the IMF for several years.
These digital asset ecosystems have been designed to address critical concerns related to transparency, legitimate liquidity sourcing, and risk-managed settlement processes. These priorities directly correspond with the attributes Lagarde outlined when describing the essential qualities of reserve-eligible assets for central banks.
This alignment has become increasingly significant in the current policy landscape. In March, the U.S. administration under President Donald Trump announced a strategic digital reserve initiative that could potentially include XRP. This move signals a federal willingness to support digital settlement networks that adhere to compliance standards.
Should future policy development follow similar trajectories, XRP and XLM could experience enhanced clarity, deeper integration, and broader institutional adoption. This would pave the way for increased cryptocurrency integration into central banking operations across Europe and globally.