EU Commission Plans To Lower Fees For Bank Transfers

EU Commission Plans To Lower Fees For Bank Transfers

The commission reportedly wants to cut costs associated with cross-border currency transfers in and out of euro.

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The commission reportedly wants to cut costs associated with cross-border currency transfers in and out of euro.

The EU Commission is launching a public consultation on ways to force banks to lower fees for cross-border transfers that are denominated in currencies different from the euro.

Cross-border payments in euros cannot cost more than domestic transfers in accordance with the rules of the EU. Now the commission want to extend this regulation to the currencies of EU member states that don`t use the euro.

Euro transactions in the euro area are usually priced very low, but this is not always the case with cross-border transactions made in other Member States’ currencies or outside the euro area.”, said Commission vice president Valdis Dombrovskis.

“I want to make sure that all Europeans pay less when transferring money abroad or taking money out of cash machines during their holidays – no matter which currency they use or where they are in the EU.”, he added.

The consultation in the commission will run until the end of October, while hoping to gather opinions from a broad range of interested parties, as the official explained in an interview with finextra.com.

There will also be a separate questionnaire tailored for consumers, he elaborated.

At the same time, Blockchain technology is reportedly having huge potential with regard to diminishing transaction costs.

In April, SWIFT, the operator of the platform used by the global interbanking system, conducted a blockchain proof-of-concept (PoC) trial that aimed to realize real-time cross-border payments.

“The nostro DLT proof of concept is deeply embedded in the Swift gpi story fo streamlining the cross-border payment system. It allows us to explore how this maturing technology can provide a collaborative solution to what our gpi member banks have identified as a significant pain point – nostro accounts reconciliation.”, said Wim Raymaekers, head of banking markets and Swift gpi, in an interview with cryptocoinnews.com.

It remains to be seen how the latest updates in the field of financial technology will affect the costs of international bank transfers.

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