On August 14, FedNow, a payment service of the US Federal Reserve, added the Hedera-based Dropp micropayment platform to its list of service providers.
So, what does this mean for the market?
FedNow Payment Service
FedNow is a payment service of the Federal Reserve of the United States, to support the process of transactions and payments almost instantaneously throughout the United States. This service was born to change the habit of using cash, as well as checks of the American people.
FedNow went live on July 20, 2023. This service is designed to maintain 24 x 7 x 365 transaction processing.
Dropp and Hedera Hashgraph
Hedera describes itself as a blockchain that operates on the Hashgraph consensus mechanism. This layer 1 claims they can achieve 10,000+ transactions per second with extremely low latency.
Dropp is a micropayment platform, built on the Hedera network and takes $HBAR as the transaction fee to conduct transactions.
Dropp supports small value transactions with reasonable fees. Currently, Dropp allows payment in USD, USDC and HBAR.
Impact on the market
Immediately after the news was announced, $HBAR surged 6% from 5.7 cents to 6 cents. After 2 trading days, now $HBAR has increased up to 32%, to the highest level at 7.5 cents. This rally pushed the capitalization of $HBAR to $2.3B, ranking 30th in the entire Crypto market.
Besides, the fact that an official payment service of the FED adds a product of the Blockchain industry to one of the service providers would create significant changes in the Crypto market in the near future.
The number of projects operating in payment services accepted by public entities would not stop at just 1. More and more payment entities in the traditional market would choose projects in the Crypto market as a service provider.
This is what happens for Paypal and Paxos with $PYUSD. The number of projects focused on building to serve payment services will increase rapidly after this news. One way or another, the Crypto market will again benefit in terms of cash flow.