The Bureau recently released a final rule that implements some consumer remittance protections listed in the Electronic Fund Transfer Act.
What the Final Rule Represents
The rule is made to protect the citizens of the United States that usually effect international remittances, by making sure that they are aware of the transaction cost, amount the recipient will receive, exchange rate, and when the payment is successfully done.
Additionally, the rule helps regulators to enforce the law. The rule observed the whole of remittance landscape and specially recognized Ripple and its digital token XRP as potential game-changers in providing cross-border payment solutions.
The final rule also stated that Ripple’s payment solutions and improvements to SWIFT have the capability to foster the way banks move money.
“The Bureau has continued to monitor the remittance transfer market since the publication of the Assessment Report and observes that most of these developments continue to progress…
Examples include 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.”
“To the degree banks and credit unions increase their reliance on closed network payment systems for sending remittance transfers and other crossborder 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.”
Recall that Herald Sheets reported in mid-May 2020 that the United States Consumer Financial Protection Bureau (CFPB) acknowledged the transparency of Ripple and the crypto asset XRP in the banking industry. These special recognitions indicate that Ripple and XRP are on the right path to mainstream adoption.