The Fed has incorporated Dropp, a Hedera-based micropayments platform using DLT technology, into its recently launched FedNow service.
FedNow connects financial institutions, businesses, and service providers to bolster digital payments infrastructure.
Dropp is expected to facilitate low-fee payments, manage incoming payments, and process diverse customer credit transfers.
US regulatory landscape intensifies
Recent months have seen heightened regulatory scrutiny in the US crypto domain. The Fed introduced the “New Activities Supervision Program” to monitor banks’ crypto activities.
Additionally, regulatory giants like the CFTC and the SEC have been targeting major crypto exchanges, including Binance and Coinbase.
The Federal Reserve, America’s central banking system, debates the implications of growing cryptocurrency prevalence.
Both Chairman Jerome Powell and Vice Chairman Lael Brainard have voiced their concerns. Powell pushes for strong oversight on stablecoins, emphasizing their treatment as real money and the necessity of central bank backing for credibility.
Brainard underscores the inadequacies of current laws to address cryptocurrency nuances, urging crypto-specific regulations to maintain financial integrity and safeguard investors.
Though the Federal Reserve influences monetary policy, directly regulating cryptocurrencies largely rests with the US Treasury and the SEC. Nonetheless, the Federal Reserve’s insights remain crucial in shaping a holistic regulatory framework for the US crypto industry.
Source: https://crypto.news/us-fed-incorporates-dlt-for-its-new-service/