A resurfaced video featuring Federal Reserve economist David Andolfatto has brought renewed attention to his statement regarding Ripple's protocol and its potential integration within the U.S. financial ecosystem.
The video, shared by crypto researcher SMQKE, captures Andolfatto acknowledging that Ripple’s system could "coexist with the U.S. payment system." This remark has reignited discussions about how blockchain technology might interface with central banking infrastructure.
The exchange occurred during a public event hosted by the Federal Reserve Bank of St. Louis, where Andolfatto previously held the position of Vice President of Research.
An audience member, who identified as a Ripple user, inquired about the feasibility of peer-to-peer, currency-agnostic payment systems operating alongside central banks in the United States.
Andolfatto's response provided a measured yet significant endorsement of interoperability between established financial systems and blockchain-based platforms.
Remember, the Federal Reserve’s David Andalfatto confirmed that Ripple’s protocol can “co-exist with the U.S Payment system.”
Listen closely.
https://t.co/fiz3ocUEASpic.twitter.com/8FhivmpIJK
— SMQKE (@SMQKEDQG) October 21, 2025
Andolfatto's Explanation of Coexistence
In the video clip, Andolfatto characterized Ripple as a "currency-agnostic platform" designed to facilitate global payments without reliance on a single monetary system. He elaborated that Ripple's protocol is equipped to process payments for both individuals and institutions across a variety of currencies, including U.S. dollars, yen, and digital assets like Bitcoin.
According to his remarks, the Federal Reserve could be considered one of multiple institutions whose currency could be utilized within the Ripple framework. This suggests a model where central bank infrastructures and blockchain-based infrastructures operate in parallel.
Andolfatto further described Ripple as a system capable of promoting financial inclusion by enabling cross-border transactions for the unbanked population. He highlighted that the platform's ability to function independently of any specific currency provides a potential bridge between the traditional banking sector and emerging decentralized technologies.
His conclusion that there is already "room for coexistence" underscored the perspective that blockchain networks could be integrated into the current monetary system rather than acting in opposition to it.
Community Reactions and Interpretations
Following the sharing of the video by SMQKE, it quickly gained traction among digital asset analysts and members of the XRP community. Many interpreted Andolfatto's statement as a confirmation of Ripple's relevance within institutional finance.
One X user, X Finance Bull, responded by suggesting that "coexistence" might understate the eventual relationship, positing that central institutions could eventually become reliant on Ripple's infrastructure for efficient payment settlement.
Although Andolfatto's comments date back several years, their resurfacing occurs at a time when blockchain interoperability, regulatory clarity, and the modernization of cross-border payments are receiving increased attention from both policymakers and private institutions.
The mention by a Federal Reserve economist of Ripple's protocol as compatible with U.S. monetary operations continues to hold symbolic significance in ongoing discussions about the role of distributed ledger technology in future financial frameworks.