Officials at the United States Consumer Financial Protection Bureau (CFPB) think Ripple and XRP have the potential to increase transparency in the remittance industry.
A CFPB report, which focuses on international money transfers under the Electronic Fund Transfer Act, reveals that the agency has been tracking emerging developments in the remittance market, including the growth of digital asset companies like Ripple. It notes that XRP “can be used to effect settlement of those transfers.”
According to the report,
“To the degree banks and credit unions increase their reliance on closed network payment systems for sending remittance transfers and other cross-border money transfers, the Bureau notes that this could result in greater standardization and ease by which sending institutions can know exact covered third-party fees and exchange rates.
The Bureau also believes that expanded adoption of SWIFT’s gpi product or Ripple’s suite of products could similarly allow banks and credit unions to know the exact final amount that recipients of remittance transfers will receive before they are sent.”
Stuart Alderoty, general counsel at Ripple, tweeted the mention.
The Consumer Financial Protection Bureau believes that Ripple’s products could allow banks and credit unions to know the exact final amount that recipients of remittances will receive before they are sent. So do we!https://t.co/GTVQYf3wAM
— Stuart Alderoty (@s_alderoty) May 16, 2020
Formed in 2011 after the passage of the Dodd-Frank Wall Street Reform and Consumer Protection Act, the CFPB is tasked with protecting consumers from deceptive market practices.
The Bureau received a record-breaking 42,774 complaints last month regarding banks and lenders, according to a report from The Hill, which is a 15% increase compared to 36,690 complaints in March. The surge in complaints tracks with Covid-19’s devastating impact on the economy.
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