The U.S. Consumer Financial Protection Bureau (CFPB) agency has released a report in which they analysed the impact of new technologies in the remittance market. One of the companies mentioned in the paper is Ripple, which is working with over 300 firms from all over the world to reduce cross border transfer fees and simplify financial transactions.
As per the report, the agency has been monitoring the growth and expansion of partnerships of crypto-related companies. Of course, Ripple is working with a large number of firms in order to simplify their processes and transfers.
The report is also mentioning XRP, the third-largest cryptocurrency in the world. On the matter, the Bureau wrote:
“[Companies such as Ripple] offer both a payments messaging platform to support cross-border money transfers as well as a virtual currency, XRP, which can be used to effect settlement of those transfers.”
Ripple is using the XRP virtual currency in order to provide liquidity to certain fiat corridors that do not have enough liquidity. At the same time, they are able to connect banks from different regions allowing users to send funds in just a few minutes rather than days with traditional and legacy systems.
The General Counsel at Ripple. Stuart Alderoty wrote on Twitter that they are also sure their services could help banks and credit unions to know the exact final amount recipients of remittances will receive.