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Fed to create payments system similar to RippleNet?

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Federal Reserve announced on Monday that they are planning to create and implement their system called FedNow for money exchange between people and businesses by 2023.

Federal Reserve announced on Monday that they are planning to create and implement their system of payments for exchange of money between people and businesses by 2023.

This new system will be called FedNow Service, that would allow any bank that is present in the U.S. to complete the debits, virtual transfers, and checks. The transactions will take up to 3 days to finalize for the ease of customers. Fed Governor Lael Brainard announced the launch of this system in his speech.

The FedNow system will operate without stopping, and it is set to be launched in the next 4 years. The reason for the launch of this system is to help those people who live a life of paycheck to paycheck as it can be hard for them to pay bills and fees. This change in the system can help them have access to their money anytime, anywhere.

The announcement made by the Fed’s won many hearts and received appreciation from everyone. Several Democratic lawmakers, liberal researchers, and consumer advocates praised this decision and supported it. Sen. Chris Van Hollen(D. Md) endorsed the decision by the Feds. He mentioned how the country has been facing trouble with the old payment systems and that it was time for a new update.

Along with this, Sen. Elizabeth Warren(D Mass.), who is also a 2020 presidential candidate added that she is happy that finally, the culture of living paycheck-to-paycheck will come to an end. But the system that Feds are planning to introduce after 4 years, we have something similar to that with us already. The system we are talking about her is known as RippleNet.

Image Credits: Google

RippleNet is a platform of institutional payment service providers such as banks and other money services businesses that use solutions developed by Ripple to provide a frictionless platform to send money globally.

The platform provides the facility of making payments through any means out of the options that are available. With a minimal transaction fee of $0.00001, and this is a paid software because the security system used in the coding helps in preventing DDoS attacks.

Along with the services, Ripple also offers its own token known as XRP. It works as a mediator for both, fiat and cryptocurrencies. The token is known to be flexible according to the needs of the users, which means that if you are trading in euros or if you are dealing in dollars, then it will become euros or dollars. This is done to minimize the commission fees on the exchange.

Not just this, Global Head of Infrastructure Innovation at Ripple, Dilip Rao retweeted FedNow news on his twitter handle and congratulated them on the major step that they are planning to take for a better future.

We don’t know what will happen to the cryptocurrencies after FedNow is launched because even if the government is planning to go on this road, the backlash for cryptocurrencies by the government is still there. We can only hope for a brighter future for cryptocurrencies as well.

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