The Federal Reserve of the United States has officially launched the FedNow Service for domestic remittances
FEDNOW, the Federal Reserve’s real-time gross settlement system, has been formally launched in the United States and began with only domestic transactions. This achievement represents a substantial improvement to the nation’s payment system.
Volante Technologies, a Ripple client and a pioneer in cloud-based payments and financial communications has contributed to the development of the FedNow service. This may be excellent news for Ripple.
Live On Domestic Transactions Officially
Implementing FEDNOW promises to provide individuals and businesses nationwide with faster and more efficient payment processing. To assure a flawless and error-free live environment, it was decided to restrict initial operations to domestic transactions.
The introduction of FEDNOW has been avidly anticipated, and its successful implementation is considered a crucial first step toward modernizing the United States’ payment system.
Real-time operation of the new technology enables instantaneous funds transfer between institutions, expedited settlements, and enhanced overall financial efficiency.
Ken Montgomery, first vice president of the Federal Reserve Bank of Boston and coordinator of the FedNow program, suggested that the financial institutions become more involved.
According to global data, the ecosystem for instant payments was valued at $100 trillion in 2021. In addition, Asian nations such as China and India dominate the market, with the U.S. joining the group somewhat later.
What Effect Will This Have on Ripple (XRP)?
XRP is experiencing an uptrend, and analysts are bullish on the cryptocurrency. Technical analysts use Elliott Wave theory to identify recurring long-term price patterns and investor psychology, which aids in determining the direction of the trend.
According to the most likely wave count (white), the XRP price is presently on wave four of a five-wave ascent. This indicates that the growth rate is expected to accelerate after the correction toward $1. Currently, XRP is trading at $0.697.
Notably, this is not the first time a Ripple partner has joined the Fed in developing the FedNow payments system. Ripple partners ACI Worldwide, Volante Technologies, and Finastra have been actively developing the FedNow.
Volante Technologies, the collaborator with the most experience in cloud payments, completed the pilot phase of the system. The two groups evaluated the “send,” “receive,” and “bank-to-bank” transmission functionalities to assist banks in adapting to the new network.
