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New US Federal Reserve Instant Payment System ‘FedNow’ Will Not Use XRP

08/31/2022
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US Federal Reserve’s upcoming FedNow is not using XRP as a bridge currency.

Despite recent tweets making the rounds, the Fed will not use XRP within FedNow, its latest payment initiative system launching in mid-2023, as it has nothing to do with cross-border payments that involve two different currencies.

Notably, XRP content creator Crypto Eri has joined the likes of Moon Lambo to express frustration at XRP influencers spreading misinformation to drive hype.

“This 2023 FedNow launch has nothing to do with cross-border flows,” Crypto Eri asserts in a tweet.

 

Famous XRP influencer Moon Lambo Writes:

“Many XRP influencers are misleading the XRP community. Not sure if it’s intentional. In order to believe that XRP is (or might be) used within the FedNow system, you have to have a fundamental misunderstanding of how XRP functions as a bridge currency and a liquidity tool. 

XRP can be used as a bridge currency to connect different payment systems (converting from 1 fiat currency to another), including FedNow, but that has nothing to do with the idea of XRP being used within the United States FedNow payment system which is domestic only at launch.”

It bears mentioning that in recent days, some XRP influencers, in response to the news of the Fed rolling out the FedNow service, have insinuated and sometimes clearly claimed that XRP will be utilized as a bridge currency in the system. Notably, The XRP Daily, a self-acclaimed XRP news platform, published an article on Tuesday, driving speculation by forcing links between the Fed project and Ripple.

In his pinned tweet, Ripple Influencer Alex Cobb, with over 134,000 followers on Twitter, shares The XRP Daily article championing it as good news for Ripple and its native token XRP, urging users to retweet the post.

While another Ripple influencer with over 133,000 followers, JackTheRippler, shared a graphic representation of how the FedNow system is supposed to work using XRP with no verifiable source. JackTheRippler asserts, “FedNow will use CBDC powered by XRP as a bridge currency!”

It is worth noting that the FedNow system is an instant payment system that will allow individuals and businesses to carry out instant payments within the US. While FedNow uses the ISO 20022 standard like RippleNet, it is not based on the blockchain. Instead, FedNow will work with 3rd party companies and banks.

The main link between Ripple and the FedNow system remains that in February, Ripple client Volante Technologies, a cloud-based payment company, was added to the FedNow payments pilot program.

While Ripple is a company that specializes in payments and central bank digital currencies (CBDCs), its focus lies in cross-border settlements, which utilize its On-Demand Liquidity (ODL) to use XRP as a bridge between two currencies. Most recently, Ripple entered into a partnership with Coins.ph and OK Remit to facilitate cross-border payments between Japan and the Philippines.

Notably, Ripple remains in a legal battle with the US SEC.

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Source: https://thecryptobasic.com/2022/08/31/new-us-federal-reserve-instant-payment-system-fednow-will-not-use-xrp/?utm_source=rss&utm_medium=rss&utm_campaign=new-us-federal-reserve-instant-payment-system-fednow-will-not-use-xrp