The remittance market has been considered as one of the fastest-growing entities in the financial industry and the world of digital assets has provided some major bigwigs in that area. Ripple, the Brad Garlinhouse led cryptocurrency organization has been working on several developments to better the cross-border transaction department. Ripple’s reach was recently demonstrated when it was mentioned in a release by the Bureau of Financial Protection.
The release covered the amendments to the Electronic Fund Transfer Act [EFTA] as amended by the Dodd-Frank Wall Street Reform and Consumer Protection Act. The amendments were made to mitigate the effects of the expiration of a statutory exception that allows insured institutions to disclose estimates instead of exact amounts to consumers.
With regard to this, the circular also mentioned the major areas of the remittance market that they will keep a close watch on, Ripple being an example. The Bureau said:
“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 payment messaging platform to support cross-border money transfers as well as a proprietary virtual currency, XRP, which can be used to effect the settlement of those transfers.”
According to the regulatory body, the multitude of developments in the space can provide ways in which banks could reduce their dependency on estimates in the future. The fact that a blockchain company was mentioned goes to show how far the industry has come in terms of mass-market adoption.
Earlier, mainstream companies used to consider only SWIFT as a legitimate mode of capital transfer but with the advent of Ripple and XRP, that has changed.
The statements from the Bureau further confirmed this notion. In the latest release, it was mentioned that Ripple’s suite of products could allow banks and credit unions to know the exact final amount that recipients of remittance transfers get. XRP enthusiasts or the ‘XRP Army’ have rejoiced at the fact that Ripple was mentioned in such close contact with important rule changes in the remittances market.
The CFPB is responsible for protecting consumers in the financial market and the latest proceedings to increase the safe harbor have garnered support from a lot of quarters. Despite Ripple’s mention in the release, sources claim that it will still be some time before the current banking system is revamped.
Disclaimer: The presented information is subjected to market conditions and may include the very own opinion of the author. Please do your ‘very own’ market research before making any investment in cryptocurrencies. Neither the writer nor the publication (TronWeekly.com) holds any responsibility for your financial loss.
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