The US Consumer Financial Protection Bureau will look into the use of digital currencies for payments and increase oversight of technology companies as they enter the traditional financial sector.
In recent months, after the market crash and the bankruptcy of several cryptocurrency platforms, digital assets have come under scrutiny from regulators. Director of the US Consumer Financial Protection Bureau (CFPB) Rohit Chopra said that the agency is now studying the use of cryptocurrencies for real-time payments. The CFPB will publish a research report in the fall.
“Is America ready for the latest technology to take root in financial services? We are already witnessing the emergence of cryptocurrency cards and cryptocurrency payments. This raises a lot of questions about the future of the financial sector, especially about data privacy,” Chopra said.
The director of the CFPB noted that large online companies are promoting the widespread use of cryptocurrencies to pay for goods and services in real time, so the Bureau is concerned about the risks of hacker attacks, technical errors and fraud. Chopra remembered the Diem project, formerly called Libra. It caused great concern among regulators in different countries, who fear that the Facebook stablecoin could pose systemic risks to the international economy and violate user privacy. As a result, due to pressure from regulators, the developers decided to close the Novi cryptocurrency wallet intended for Diem.
Last year, the CFPB required major companies such as Meta, Amazon, Apple and Google to clarify how they collect and use consumer payment data. Note that Chopra took over as chairman of the CFPB in 2021. Previously, he served as the Democratic Commissioner for the US Federal Trade Commission (FTC), dealing with major technology companies on competition issues.
In 2020, the CFPB recognized the potential of the XRP cryptocurrency for making international payments, as the Ripple solution allows transactions to be made instantly and without high fees.
Source: Bits
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