US Fed To Launch FedNow In July, Countering Ripple?

Dalmas Ngetich

2 years ago

3 mins read

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The United States Federal Reserve (Fed) will launch the FedNow service in July 2023, according to an announcement on March 15.

FedNow Launching In July

FedNow is a service that allows banks to transfer funds speedily across the broader financial system in the country. Described as a “modern” instant payment service, the platform was first announced in 2019, but the Fed plans to activate the service in the next few months.

From the first week of April, the Fed will begin certifying participating banks ahead of launch. Those willing to take part will have to complete a customer testing and certification program. The details of the program were derived from the FedNow pilot program. Information collected, the Fed says, will aid early adopting banks in preparing before they begin initiating live transactions.

Ken Montgomery, first vice president of the Federal Reserve Bank of Boston and FedNow program executive, wants financial institutions to gear up ahead of the launch. FedNow, he says, is open for all regulated banks in the country.

We couldn’t be more excited about the forthcoming FedNow launch, which will enable every participating financial institution, the smallest to the largest and from all corners of the country, to offer a modern instant payment solution. With the launch drawing near, we urge financial institutions and their industry partners to move full steam ahead with preparations to join the FedNow Service.

Tom Barkin, president of the Federal Reserve Bank of Richmond and FedNow Program executive sponsor, said the platform would be adaptive, resilient, and accessible.

A Blow To Ripple?

The announcement of FedNow is amid the proliferation of alternative, blockchain-based solutions, especially Ripple.

Ripple Inc., the blockchain company closely associated with XRP, a cryptocurrency native to the XRP Ledger, aims to offer cheap, instant cross-border payment solutions for banks.

At the core of their service, through the Liquidity Hub, Ripple allows banks, some of whom are part of the RippleNet, to use XRP and move funds.

Ripple Price On March 16| Source: XRPUSDT On Binance, TradingView

By leveraging a cryptocurrency, Ripple enables partnering banks to move funds globally more efficiently. As they do so, transactions are settled instantaneously. Over the years, partners, leveraging the Liquidity Hub, have been able to utilize the platform for their varied needs.

However, as it appears, the Fed is now offering an alternative to banks in the United States to move funds across the financial system, using their solution.

Ripple has an ongoing case against the United States Securities and Exchange Commission (SEC) as the regulator claims that XRP, the token key in Ripple’s cross-border payment solution, is an unregistered security.

The SEC has also issued a Wells Notice to Paxos, the issuer of BUSD. In the letter, the regulator said the stablecoin is a security.

Feature Image From Canva, Chart From TradingView

Dalmas Ngetich

Dalmas, a seasoned crypto reporter, brings a unique perspective to the industry. His specialization in NFTs, blockchain, DeFi, and blockchain news for NewsBTC, combined with a background in mechanical engineering and over a decade of experience in journalism, has allowed him to craft over 10,000 news and feature articles over the past eight years. His diverse range of topics, including technology, Forex, and finance, reflects his comprehensive understanding of the crypto landscape.

His technical expertise and analytical skills have been recognized and featured by leading news outlets such as Investing.com, CoinTelegraph, Entrepreneur, Forbes, and other authority sites. Notably, he broke key news, including the Ripple and MoneyGram partnership, cementing his position as a thought leader in crypto.
The news exploded. Over 100,000 people devoured this meticulously crafted report, from seasoned investors to curious newcomers. His analysis wasn't just dry facts and figures; it crackled with insight, dissecting the implications of the partnership and its potential impact on the future of finance.

His deep understanding of the financial markets, technological advancements, and blockchain developments has made him a respected voice in the industry.

Dalmas is also the founder of BTC-Pulse, a crypto news site, further demonstrating his commitment to the field. He firmly believes that DeFi and NFTs are here to stay and will continue to drive financial inclusion.

Coming from Nairobi, Kenya, it is easy to see the source of his inspiration: Across Africa, millions lack access to traditional banks. Remote villages, limited documentation, and high minimum balances create insurmountable barriers.

DeFi, not just Maker or Aave, for example, but think of Bitcoin and USDT, cuts out the middleman. Forget banks with their limitations.
Even so, DeFi isn't a magic solution. The continent still struggles with reliable internet access, and educational campaigns highlighting the benefits of this wonderful solution are insufficient. Moreover, even for those interested, understanding DeFi can look like learning a new language.

Dalmas is here to help make the tech easy to understand and digestible, even for beginners.
The story of DeFi in Africa is still being written. Challenges abound, but the promise of a more inclusive financial future is a powerful motivator. With innovation and collaboration, Dalmas firmly believes that DeFi could become the key to unlocking Africa's full economic potential.
This possibility and its immense value motivate Dalmas to continue breaking key DeFi innovations and more across the globe. His engineering background further enhances his ability to deliver well-thought-out pieces that blend technical insight with clear, impactful reporting.

Beyond his professional achievements, Dalmas is deeply passionate about technology and politics. Policies drive adoption, and being at the forefront and keeping up with how they evolve is crucial for the sphere to mature.

When Dalmas is not closely monitoring the latest crypto events, he can be found in nature, exploring the picturesque countryside, and traveling with his family and friends. His love for adventure and discovery perfectly complements his investigative and reporting skills.
You can connect with Dalmas on X: @Dalmas_Ngetich, or contact him on Telegram @Dalmas_Ngetich.

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