US Consumer Authority Probes Crypto Use for Online Payments

07/27/2022

1 minute read

2022.07.27 19:45

US consumer watchdog CFPB has been probing the use of crypto for real-time payments.
CFPB believes global tech giants are using their market influence to scale the adoption of crypto.
Meanwhile, Wall Street giants are doubling down on their crypto bets despite the crypto winter.

Consumer Financial Protection Bureau (CFPB), the top US consumer authority, revealed that it is studying the effects of cryptocurrency used for real-time payments. In fact, it has been probing crypto for a while, and it is about to publish a report in the third quarter of 2022.

Specifically, CFPB is focusing on global tech giants that are making their foray into traditional finance using crypto as a ticket. According to Director Rohit Chopra, this phenomenon could pave the way for the widespread adoption of cryptocurrencies, especially since most financial transactions now happen online.

This is not the first time that CFPB scrutinized the use of crypto for digital payments. Back in November 2021, the US consumer watchdog engaged the public regarding stablecoins and the use of Big Tech companies’ influence to scale the adoption of blockchain-powered payment networks.

Along with its findings regarding the use of crypto for real-time payments, it will also submit a proposal to bolster the consumer finance competition in 2023. Meanwhile, it also began to seek a public opinion regarding ways to enhance customer service at prominent banking institutions.

It can be observed that Wall Street banks JPMorgan Chase (NYSE:JPM), Goldman Sachs (NYSE:GS), and Morgan Stanley (NYSE:MS) have been upsizing their crypto teams despite the ongoing crypto winter. Furthermore, other competitors such as Wells Fargo (NYSE:WFC), Citigroup (NYSE:C), BNY Mellon (NYSE:BK), and Barclays (LON:BARC) are now on a crypto hiring spree.