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FedNow Unveils DLT-Powered Payments Mechanism in the Form of Service Provider

The Federal Reserve said it doesn’t back or approve any of the providers shown on its website’s showcase.

ShahZaib Ahmed



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FedNow, the rapid payment system of the US Federal Reserve, has incorporated a firm that is operated by Hedera Hashgraph (a distributed ledger technology using company) into its series of service providers. On the 14th of August, the official website of FedNow incorporated Dropp into the FedNow Service Provider Showcase portion. It is a micropayments forum developed on Hedera.

FedNow of the US Federal Reserve Displays DLT-Powered System of Payments as a Service Provider

The respective section targets to create a link between financial entities ad service providing platforms that can assist them in innovating and implementing rapid payment products with the use of the FedNow Service. As per the web portal of the agency, Dropp plays the role of a digital solution structured to facilitate merchants in accepting payments while requiring now huge payments in the form of transfer charges.

Also Read: Fed Confirms that the Regulators are Withholding Membership of Custodial Banks on Account of their Crypto Connections

The latest update indicated that the Federal Reserve is potentially beginning its venture into the DLT sector. However, the FedNow service noted on the formal website of the forum that the materials are just displayed as a convenience to likely participants of the FedNow service. It pointed out that the Federal Reserve Financial Services (FRFS) is just the host for the display and is incompatible with or does not promote any of the showcase providers.

A Few among the Crypto Community Condemn the Respective Development In the meantime, a few members of the crypto community condemned the latest move. A community participant took to Reddit and expressed sentiments of hopelessness as people applauded the exclusive partnership. As per that Redditor, it is reasonable that people seek an improved financial sector, however getting it at the cost of an open and fair financial system is not the right idea.

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