Rajarshi Mitra
Independent Analyst
- The United States Consumer Financial Protection Bureau believes Ripple has the potential to increase transparency in the remittance industry.
- A CFPB report revealed that the agency has been tracking the developments in the remittance market.
- The agency also highlighted that XRP could be used to effect settlements of cross-border money transfers.
According to the authorities at the United States Consumer Financial Protection Bureau (CFPB), Ripple and XRP have the potential to increase transparency in the remittance industry. A recent CFPB report revealed that the agency has been tracking the developments in the remittance market. One of these developments is “the continued growth and expanding partnerships” of digital asset companies like Ripple, the agency noted.
The CFPB particularly highlighted that XRP could be used for secure settlements of cross-border money transfers. The firm’s suite of products could “allow banks and credit unions to know the exact final amount that recipients of remittance transfers will receive before they are sent."
An excerpt from the report reads:
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 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! -s_alderoty
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