The service, known as FedNow Service, was announced in 2019, and is expected to go live in 2023. This Tuesday, the Fed launched the FedNow Service Provider Showcase, which will demonstrate the service providers’ potential.
The potential for instant payments over the blockchain – from anywhere in the world – continues to attract new individuals, companies, and even governments. On Tuesday, March 8th, the Fed launched the FedNow Service Provider Showcase, allowing service providers to present their instant payment solutions and capabilities to financial institutions and businesses that are actively looking to adopt the FedNow Service.
A New Era of Sending Money is Approaching
FedNow Service is a revolutionary project that aims to enable real-time payments. It will offer a wide range of services meant for financial institutions, as well as their clients, and it is expected to see full launch at some point in 2023.
For now, however, the Federal Reserve has launched the FedNow Service Provider Showcase, which currently includes over 70 profiles and service providers that allow for instant payments. An interesting aspect of its development is the fact that the platform is closely tied to Chinese blockchain projects, which even includes a collaboration with Suzhou City Municipal, for the development of the city’s blockchain infrastructure.
One of the main blockchain firms featured in the showcase is a company called Cypherium, whose CEO, Sky Guo, confirmed that they are the only blockchain firm selected so far. The company said that it will allow consumers to use Cypherium’s blockchain or crypto wallet as part of the FedNow project.
Furthermore, the firm’s CEO said that the Cypherium tech will allow for interoperability with a variety of different payment solutions, including RTGS, blockchains, and various payment solution providers. There are even plans for the project to work with CBDCs, which means that FedNow could tie all of the separate trends together. (Note: The Federal Reserve maintains no business relationship with Cypherium.)
Not only will Cypherium’s participation help organizations connect with partners in order to build a functional end-to-end solution for a demanding market, it will also assist with identifying new ones.
US Fed is Not Cypherium’s Only Partner Aiming to Boost Transactions
Cypherium also has ties to another organization that aims to deliver a global, inclusive payment solution called U.S. Faster Payments Council (FPC). In 2019, the Fed started looking into the project that will eventually become FedNow. Cypherium teamed up with FPC around the same time, and so far, it has been the only blockchain-based company collaborating with the Council, other than Ripple.
As for the US Federal Reserve, it views its new service as something that will allow all US banks, regardless of size, to begin offering instant payments to their clients by 2023, and finally take the financial systems to the next level. The system will still be highly centralized, but applying blockchain technology will bring forth a new standard in terms of quality, speed, and other aspects of sending money.