A proposed bill on payment insurances refers to Ripple and XRP as the newest developments in payment channels. The incline in cross-border remittances has raised US awareness of regulators to the opportunities for tracking and securing funds.
The future potential of payment platform
Ripple and XRP were mentioned as cross-border payment systems in the proposed bill text. A document on Remittance Transfers Under the Electronic Fund Transfer Act (Regulation E) is still in discussion until January 2021.
On page 38 of Remittance Rules stated that 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. With 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 the adequate settlement of those transfers.
Ripple network may work alongside Swift
Ripple was mentioned as being a system that could accurately predict the funds to be received. The Bureau believes that the broad adoption of SWIFT’s GPI product or Ripple’s suite of products could help banks and credit unions to know the exact final amount that recipients of remittance transfers will receive before they send the transfer.
The document did not mention other payment platforms or blockchains specifically, so XRP has been considered only digital assets related to a unique remittance system. However, the proposed legislation on protecting remittances does not involve insurance of transfers on other blockchain networks, but only fiat settlements.
Ripple has currently encouraged all users to make transfers and settlements through Ripple Network, which unified xCurrent and xRapid. And the usage of XRP is still optional.
The XRP digital asset stays as one of the speculative bets in the crypto space. XRP stood to a lower range of $0.21, which many see as an uncertain entry point to bet on a future rally.
Source: AZCoin News . com