May 19, 2020 18:30 UTC
May 19, 2020 at 18:30 UTC
US CFPB Think Ripple and XRP Have Potential To Increase Transparency in Banking Industry
Authorities at the United States Consumer Financial Protection Bureau (CFPB) think that Ripple and XRP can possibly expand transparency in the remittance industry.
A CFPB report, which centers around worldwide money transfers under the Electronic Fund Transfer Act, uncovers that the office has been tracking rising advancements in the remittance market, including the development of the digital asset companies like Ripple. It takes not of that XRP ‘can be utilized to impact settlement of those transfers.’
As indicated by 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 as below.
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
Shaped in 2011 after the entry of the Dodd-Frank Wall Street Reform and Consumer Protection Act, the CFPB is entrusted with shielding shoppers from deceptive market practices.
The Bureau got a record-breaking 42,774 objections a month ago in regards to banks and moneylenders, as per a report from The Hill, which is a 15% expansion contrasted with 36,690 complaints in March. The surge in complaints follows COVID-19’s overwhelming effect on the economy.