The use case of Ripple (XRP) in the remittance market has just been handed a major recognition by the United States in an official document released by the government of the country.
Ripple and XRP made headlines after the cryptocurrency and the blockchain technology got mentioned for the first time in a publication of the US Government.
The Consumer Financial Protection Bureau (CFPB), a US agency guiding consumers in the financial sector, in the document titled “Remittance Transfers Under the Electronic Fund Transfer Act” affirms Ripple (XRP) technology is disrupting the remittance industry.
The bureau mentions that in its monitoring of the remittance transfer market, it observed that the development of the industry continues to progress, highlighting Ripple (XRP) and SWIFT’s growth as one of its important observations.
CFPB noted that SWIFT’s global payment innovation (gpi) transfer tracking product has introduced a number of developments into the sector, adding that it helps increases “up-front information available to sending institutions.”
CFPB also highlighted the sustained progress of the virtual currency companies and their increasing partners across the globe. Mentioning Ripple and its native token XRP alone, the bureau stated that the blockchain technology offers a messaging platform for transfer of money.
“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 proprietary virtual currency, XRP, which can be used to effect settlement of those transfers,” CFPB noted.
The Bureau averred that the developments suggest that banks and credit unions may cut that reliance on estimates in the nearest future, resulting in greater standardization that allows sending institutions to calculate exact third-party fees and exchange rates.
CFPB says it believes that with the increased adoption of SWIFT’s gpi and Ripple’s product for remittance purposes, banks and credit unions can now estimate the precise amount a recipient will receive in a remittance transfer before executing the transaction.
In the assessment report, CFPB stated that it was observed that there has been significant changes and development in the remittance market since enacting the “Remittance Transfers Under the Electronic Fund Transfer Act.”