FedNow showcases DLT-powered payments system as service provider


The United States Federal Reserve’s immediate cost system, FedNow, has added an organization powered by the distributed ledger expertise (DLT) platform Hedera Hashgraph to its record showcasing service suppliers. 

On Aug. 14, FedNow’s official web site added Dropp — a micropayments platform constructed on Hedera — to its FedNow Service Provider Showcase part. The part goals to attach monetary establishments and companies with service suppliers that may “help them innovate and implement instant payment products using the FedNow Service.“

DLT-powered platform Dropp showcased on FedNow’s website: Source: FedNow

According to FedNow’s site, Dropp is a digital solution that was made so that merchants can accept payments at low costs. The company uses DLT and regulated banking tech to build its solution that allows merchants to accept payments without paying huge transaction fees. 

While the new update seemed like the Federal Reserve is warming up to DLTs, the FedNow service also wrote on its website that the materials are only “presented as a convenience” to potential FedNow service individuals.

“Federal Reserve Financial Services (FRFS) is merely the host for the showcase and does not support or endorse any showcase providers, and the inclusion or exclusion of a provider should in no way imply any recommendation or endorsement by FRFS,” FedNow wrote.

Related: FedNow Service has no relation with CBDCs, Federal Reserve clarifies

Meanwhile, some crypto group members criticized the brand new improvement, saying that folks could have given up on the thought of crypto being an alternative choice to the corruption in monetary methods. On Reddit, a group member expressed feeling hopeless as folks cheered on the brand new partnership. According to the Redditor, it’s comprehensible that persons are making an attempt to get a greater monetary state of affairs, however it shouldn’t be on the expense of getting a good and open monetary system.

A group member sharing their ideas on the brand new improvement. Source: Reddit

Earlier this 12 months, different blockchain networks introduced that they might connect with FedNow service however disappeared from the positioning days after being added. On May 11, Metal Blockchain announced that it would be connecting to the FedNow service. However, the service provider was removed from the site after a couple of days. 

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