Ripple Gains Praise From US Consumer Financial Protection Bureau For Remittance Service
Ripple and XRP’s remittance potential in cross-border transfers has been recognized by the US Consumer Financial Protection Bureau (CFPB).
According to a CFPB paper from May 11, the bureau responsible for providing the financial sector’s US consumers has been researching the remittance market’s new trends. Furthermore, it has been focusing on the continued expansion and growth of partnerships developed by digital asset companies such as Ripple.
XRP for Settling Cross-Border Transfers
In the same paper, the CFPB mentioned that XRP could be used for cross-border transfers. Also, Ripple’s products can give credit unions and banks exact information on how much remittance transfers’ recipients are going to receive before they’re even being sent anything.
The platform for global payments innovation (GPI) from SWIFT was mentioned in the paper too. This platform’s purpose is to speed up remittance by using the infrastructure banks from all over the world prefer to use.
SWIFT said it was considering using blockchain rails for its GPI solution ever since 2019, yet no update on this matter has been provided yet.
Ripple Pushes for XRP Adoption
In spite of showing support for Ripple, the CFPB doesn’t seem too enthusiastic about crypto company’s push for widespread adoption of the XRP. It concluded that any new solutions would most likely not eliminate the reliance on their correspondent banking network, as this what the market players’ feedback and the agency’s estimations have revealed.
Despite this, Ripple doesn’t give up, aiming at the financial mainstream. Only last month, it had Japan-based financial giant SBI Holdings, which it’s its investor and partner, announcing that Ripple-powered settlements are going to be integrated with ATMs all over Japan. According to market researcher Fundstrat, XRP was the weakest performing crypto asset since the beginning of 2020 until May.