In an attempt to modernize real-time payment solutions within the US, the Federal Reserve’s Board of Governors announced plans to develop a real-time payment service known as FedNOW.
The Board has charged Federal Reserve Banks with overseeing the development of FedNOW, expected to be released by 2024. It’s also taking comments on how FedNOW might best be designed to meet current stakeholder interests.
As noted by the Board,
“The Federal Reserve believes faster payment services, which enable the near-instantaneous transfer of funds day and night, weekend and weekdays, have the potential to become widely used and to yield economic benefits for individuals and businesses by providing them with more flexibility to manage their money and make time-sensitive payments.”
As Federal Reserve Board Governor Lael Brainard has stated:
“Everyone deserves the same ability to make and receive payments immediately and securely, and every bank deserves the same opportunity to offer that service to its community. FedNOW will permit banks of every size in every community across the country to provide real-time payments to their customers.”
For the Federal Reserve, achieving fast transaction speeds remains a high priority. As such, FedNOW will feature instantaneous transactions that few cryptocurrencies can provide.
However, officials at digital asset firms like Morgan Creek Digital Assets and MV Index Solutions questioned the necessity of such a project. They believe access to Bitcoin is sufficient.
If FedNOW succeeds, slow transaction speeds will no longer be an obstacle to mainstream adoption.
Likewise, cryptocurrency projects that provide only near-instant transactions would be obsolete (for legal transactions within the USA).
However, a great many cryptocurrency projects under development currently seek to resolve scalability and security issues, not merely promote instant transaction capabilities.
Several companies are seeking to develop practical applications of distributed ledger technology.
Cryptocurrency need not remain the primary focus of any platform, as its merely one element conducive to distributed ledger technology. As such, we believe the future lies with the overall technology and the endless possibilities it can support.
Aside from merely offering cryptocurrency, XTRABYTESTM is building a platform that will bring the benefits of decentralization to a variety of everyday tasks (beyond simply serving as an alternative payment processor).
After all, XTRABYTES’ mission is to provide blockchain solutions that offer greater functionality than currently found in other cryptocurrency projects.