The U.S. Consumer Financial Protection Bureau has issued an important set of rules on cross-border money transfers. In addition, the institution called Ripple and XRP a major game changer in the remittance market.
Critical rules for the remittance market from the U.S. Consumer Financial Protection Bureau
The U.S. Consumer Financial Protection Bureau has issued a series of final rules that protect consumers in wire transfer transactions outlined in the Electronic Funds Transfer Act. The rule is designed to protect US citizens who send international transfers, knowing the transfer fee, the exchange rate, the amount the buyer will receive, and when the payment will be completed.
Although primarily designed to help regulators enforce the law, the rule also examines the remittance environment as a whole and specifically calls Ripple and the crypto asset XRP potentially transformative cross-border payment solutions. The following details draw attention in the rule text:
OFFICE, ASSESSMENT the REPORT OF PUBLICATION SINCE TRANSFER MONITORING the TRANSFER MARKET CONTINUED AND observes that these developments MOST PROGRESS CONTINUE ... EXAMPLES BETWEEN BOTH OF CROSS-BORDER PAYMENT MESSAGING PLATFORM TO SUPPORT the MONEY TRANSFERS BOTH CAN BE USED TO ACHIEVE ITS SETTLEMENT OF SUCH TRANSFER A VIRTUAL CURRENCY CONTINUOUS GROWTH AND EXPANDING PARTNERSHIPS OF VIRTUAL CURRENCY COMPANIES LIKE RIPP OFFERING THE XRP WHICH ARE ...
CFPB: Ripple and XRP is a big game changer in the money order market
According to the latest rule, CFPB believes that Ripple's payment technologies and Swift can give banks advanced control over money transfer. The U.S. Consumer Financial Protection Bureau has made the following statement:
BANQUES ARE ADDICTED TO THE BANKS AND CREDIT UNIONS, AIRPORTS AND OVER BORDER MONEY TRANSFERS. THE OFFICE IS ALSO WHICH WILL RECEIVE THE SWIFT'S GPI PRODUCT OR RIPPLE'S PRODUCT PACKAGE BEFORE SUBMISSIONS TO THE BANKS AND CREDIT ASSOCIATION BEFORE SENDING THE TRANSFER AIR PURCHASERS TO THE BANKS.
New protections implemented by the CFPB were first added to the Electronic Funds Transfer Act as part of Wall Street and banking reforms came into force in 2010. Before the reforms, cross-border transfers were largely outside the scope of federal consumer protection laws.