Posted 3 years ago | by Ben Armstrong
FedNow States Plans with XRP
The Federal Reserve has made a FedNow XRP statement.
In August, the Federal Reserve announced its plans to create a 24-7 digital payment settlement system. The name of the project, FedNow, will help expedite the process of settling payments. Many people in the XRP community have prognosticated that a partnership between the US Federal Reserve and Ripple is inevitable. It looks like those calls may have been premature.
On Monday, the Federal Reserve held a 90 minute webinar where it fielded many questions regarding the announcement. One of the questions specifically was whether or not the Federal Reserve would be using digital assets such as XRP to handle settlements. The answer to this question was not the one that the XRP community was hoping for:
FedNow transitions will settle to Federal Reserve master accounts in U.S. dollars... At this time there isn’t a contemplation of using other types of currencies.
The representative for the Federal Reserve during the call was Connie Theien who serves as the Vice President at the Federal Reserve Bank of Chicago & also as the Director of Payments Industry Relations for the Federal Reserve System.
FedNow XRP Plans Could Change
This statement is certainly a blow to the hopes of XRP investors who were hoping an official partnership between the US government & Ripple Labs would have sent the price soaring. Unfortunately, investors will now have to look for other news to help increase the price.
However, they may be able to find comfort in the fact that the statement said "At this time there isn't a contemplation". This implies that this decision is not iron clad. If the Bitcoin price were to drastically increase over the next few years then the Federal Reserve may take a second look. FedNow is not going to launch for three more years so there is still time for changes.
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