The U.S. Consumer Financial Protection Bureau (CFPB) has given XRP a nod for its use in cross-border money transfers.
According to a paper published on May 11, the CFPB has been researching new developments in the remittance market, including trends related to digital currencies. The organization, which is responsible for protecting consumers in the financial sector, wrote on the “continued growth and expanding partnerships” of companies such as Ripple.
The paper also noted the use of XRP for settlement of cross-border money transfers:
“The Bureau has continued to monitor…the continued growth and expanding partnerships of virtual currency companies, such as Ripple, which offer both a payments messaging platform to support cross-border money transfers as well as a virtual currency, XRP, which can be used to effect settlement of those transfers.”
Interestingly, the CFPB seemed to praise Ripple for bringing simplicity and transparency to the banking industry:
“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, seemed happy with the report’s findings:
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
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