Finally, XRP has been mentioned by the United States government. This has been a long time coming. On December 6th the Consumer Financial Protection Bureau published a document called Remittance Transfers Under the Electronic Fund Transfer Act (Regulation E). This document by the CFPB focuses on the developments in the remittance markets. The Consumer Financial Protection Bureau is an agency of the United States government responsible for consumer protection in the financial sector. The CFPB mentions that the remittance market has faced “substantial changes” since the implementation of the rule due to the incorporation of cutting-edge technologies by cross-border payment providers.
Here comes what everyone has been waiting for. The Consumer Financial Protection Bureau mentioned that the remittance market has faced substantial changes and mentioned that Ripple is a disruptor in the industry. Furthermore, the CFPB states that the adoption of Ripple’s products could let banks know what exact amount of their transfers will be received by recipients before sending them. See the full quote below.
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: (1) The continued growth and expanding functionality of the Society for Worldwide Interbank Financial Telecommunication (SWIFT)’s “global payment innovation” (gpi) tracking product, which can increase the amount of up-front information available to sending Start Printed Page 67142institutions, and the expansion of the major payment card networks’ capacity to support cross-border payments;  (2) the continued growth of “fintech” nonbank remittance transfer providers and their further expansion into partnerships and other relationships with banks and credit unions, which allow such entities to tap into the closed network payment systems that nonbank remittance transfer providers have developed;  and (3) 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.