The Federal Reserve is set to launch an instant payment system called FedNow, which promises to revolutionize the way Americans make payments. In a recent announcement, Metal Blockchain revealed that its network will be integrated with FedNow, providing Metal users with the ability to convert funds to stablecoin instantly using FedNow’s “send/receive” function. This move is set to create a larger blockchain ecosystem that will facilitate secure communication between banks and process payments and settlements without relying on intermediaries or oracles.
What is FedNow?
The United States Federal Reserve’s forthcoming instant payment service, FedNow, is a real-time payment system that enables individuals and businesses to make instant payments 24/7/365. With FedNow, Americans can make instant payments to any bank account holder in the US using their existing bank accounts.
Metal Blockchain: Compliance-Friendly DeFi Network
Metal Blockchain is a crypto network that Metallicus created to offer compliance-friendly options for decentralized finance (DeFi) developers. Metal is built on a fork of Avalanche’s code, and it is designed to comply with the Bank Secrecy Act (BSA), implying that it has identity verification and anti-money laundering features built in.
Metal Blockchain and FedNow Integration
Metal Blockchain’s integration with FedNow will enable Metal users to instantly convert funds to stablecoin and back again using FedNow’s “send/receive” function. This integration is set to create interconnected “bank chains” that will allow banks to communicate with each other to process payments and handle settlements while staying connected to the FedNow system.
Preparing for Central Bank Digital Currency
Metal’s integration with FedNow will allow banks to prepare for an eventual central bank digital currency (CBDC) as well as for “bank-issued stablecoins that can interact within a basket of stablecoin currencies.” CBDCs have been criticized by some US politicians who claim that they are a first step towards a blockchain-based CBDC that will infringe on privacy. However, Metallicus co-founder and CEO Marshall Hayner believes this criticism is unfounded, as the same rigor applied to the banking system will be applied to CBDC.
The integration of Metal Blockchain and FedNow is set to revolutionize the way Americans make payments. With instant payments available 24/7/365, Americans will have access to a faster and more efficient payment system. Furthermore, Metal’s compliance-friendly network will help facilitate secure communication between banks and create a larger blockchain ecosystem that will process payments and settlements without relying on intermediaries or oracles.
- What is FedNow?
- FedNow is an instant payment system developed by the United States Federal Reserve that allows for round-the-clock, near-instant payments between banks.
- What is Metal Blockchain?
- Metal Blockchain is a crypto network developed by Metallicus that offers compliance-friendly options for decentralized finance (DeFi) developers.
- What are the benefits of the Metal and FedNow integration?
- The Metal and FedNow integration will create a larger blockchain ecosystem that will facilitate secure communication between banks and process payments and settlements without relying on intermediaries or oracles.
- Will the Metal and FedNow integration help prepare for central bank digital currency (CBDC)?
- Yes, the Metal and FedNow integration will allow banks to prepare for an eventual CBDC, as well as for “bank-issued stablecoins that can interact within a basket of stablecoin currencies.”
- What is the controversy surrounding CBDCs?
- The controversy surrounding CBDCs involves concerns over privacy and government control. Critics worry that a CBDC could infringe on privacy and lead to loss of financial independence, while proponents argue that it could improve payment systems and financial inclusion.
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