The US Federal Reserve (FED) is embracing innovation by showcasing a distributed ledger technology (DLT) powered company on its FedNow instant payment system platform. The addition of Dropp, a micropayments platform built on the Hedera Hashgraph DLT platform, to the FedNow Service Provider Showcase section, signals a move towards integrating DLT technology into the realm of instant payments. However, the Federal Reserve makes it clear that its showcase is for informational purposes only and does not signify endorsement or support of any showcased providers.
FedNow Highlights DLT-Powered Solution
On August 14, the official website of FedNow included Dropp in its showcase of service providers. Dropp, built on Hedera Hashgraph, offers a digital solution designed to enable merchants to accept payments at minimal costs. By utilizing distributed ledger technology and regulated banking technology, Dropp aims to empower merchants to accept payments without the burden of high transaction fees. The inclusion of Dropp in the showcase signifies the Federal Reserve’s recognition of the potential of DLT in streamlining payment processes and reducing costs.
Federal Reserve’s Position and Community Reactions
While the addition of Dropp and its DLT-powered solution to the FedNow showcase may indicate a willingness to explore innovative payment technologies, the Federal Reserve emphasizes its neutral stance. The showcase is intended to connect financial institutions and businesses with service providers, yet the Federal Reserve clarifies that it neither supports nor endorses any of the providers featured. This disclaimer serves as a reminder that the showcased solutions are presented as a convenience and do not imply an official recommendation or endorsement.
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The crypto community’s reaction to this development has been mixed. Some members of the community expressed concerns that the enthusiasm around such partnerships might divert attention from the original goal of cryptocurrencies as an alternative to traditional financial systems. While the pursuit of improved financial solutions is understandable, these community members stress the importance of upholding fairness and openness in financial systems.
HBAR Token Surges 18% After The News
Following the announcement, the native token of Hedera Hashgraph, known as HBAR, experienced a significant surge in value, recording an impressive 18% increase. This surge reflects the market’s positive response to Dropp’s integration into the FedNow Service Provider Showcase and underscores the growing interest in DLT-powered solutions within the financial sector.
Conclusion
The addition of Dropp, a DLT-powered micropayments platform, to the FedNow Service Provider Showcase, highlights the Federal Reserve’s interest in exploring innovative payment solutions. Dropp’s integration into the showcase underscores the potential of DLT, particularly the Hedera Hashgraph platform, to revolutionize the way payments are processed and accepted. However, it’s crucial to note that the Federal Reserve’s showcase is not an endorsement of any specific provider. As the financial landscape evolves, it remains essential for the crypto community to maintain a focus on the core principles of transparency and fairness in financial systems.
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