They believe that Ripple and its digital token XRP have the potential of fostering transparency in the remittance industry.
A recent report made public by CFPB that focuses on cross-border money transfers under the Electronic Fund Transfer Act, reveals that the US agency has been following developments in the remittance market. The growth of digital asset firms such as Ripple was also emphasized, noting that XRP can be used to effect the settlement of those transactions.
The report says,
“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.”
The General Counsel at Ripple, Stuart Alderoty, took to Twitter about two days ago to share the mention of Ripple’s products by CFPB.
“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!”
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
The Consumer Financial Protection Bureau (CFPB) emerged in 2011 after the Dodd-Frank Wall Street and Consumer Protection was passed.
CFPB is responsible for protecting consumers from deceptive prices of goods and services in the market.