- The Federal Reserve Bank of America is rumored to be working with Ripple following some comments by Jerome Powell.
- The Federal Reserve’s upcoming instant payment service, FedNow, will launch in the coming month with several financial institutions onboarded already Ripple partners.
Rumors are swirling on Twitter about the Federal Reserve Bank of America working with Ripple. This comes just days before the Fed launches its instant payment service, FedNow, in July. The new payment system service will allow all participating banks to offer a modern instant payment solution.
Earlier, CNF reported that FedNow would be linked to Metal Blockchain, enabling Metal users to quickly convert funds to stablecoin and vice versa by utilizing FedNow’s “send/receive” feature.
The partnership marked a major step in bridging the barrier between conventional banking and decentralized finance. Ripple, has been a prominent provider of cross-border payments and open-source distributed ledger technology for financial transactions and may be included among the fintech companies that FedNow will service.
According to the list of FedNow financial institutions onboarded for July 1st ISO20022 enabled real-time settlement, and a number are Ripple partners including ACI Worldwide, Finastra, and Volante Technologies.
One hint of a collaboration between Ripple and the Fed, while far-fetched, was made by Fed chairman Jerome Powell in the semi-annual testimony before the US Congress.
A Twitter user noted that in his speech, Jerome Powell says he’s been a “Grateful Dead fan for 50 years,” to which Congressman Wiley Nickel responds, “I’ve found one universal truth — I like people who like the Grateful Dead.” Interestingly, In Ripple’s 2018 video about how they got started, Chris Larsen says, “We’ve always loved the Grateful Dead.”
Was there a subtle nod to @ripple at yesterday’s press conference or just a coincidence? 🤔
1. Jerome Powell says he’s been a “Grateful Dead fan for 50 years.”
2. Congressman Wiley Nickel responds, “I’ve found one universal truth — I like people who like the Grateful Dead”
3.… pic.twitter.com/pv9LTUruMt
— NotFinancialAdvice.Crypto (@NFAdotcrypto) June 22, 2023
While the remarks were far-fetched and open to interpretation for anyone, there were some other direct and promising comments. These included the Fed chairman saying that the Bitcoin and crypto asset class “appears to have some staying power” in the US economy. In addition, the chairman was positive about stablecoins saying it sees payments stablecoins as a form of money, noting it would have “quite robust federal role in what happens in stablecoins going forward.”
A potential partnership that drives the adoption of Ripple’s technology aside, the establishment of FedNow bars the adoption of blockchain-based solutions like Ripple. Additionally, FedNow will offer a framework for the forthcoming launch of a CBDC which is in no way good news for either the crypto industry or the users of the digital money.
XRP Price Reaction
Amidst the recent speculation, Ripple’s XRP has recorded a marginal change of under 1 percent in the last 24 hours. Trading for $0.48 at the time of press, the digital asset is still being held down by the ongoing lawsuit against the SEC that seeks to categorize the token as a security.
The case has undoubtedly limited Ripple’s ability to partner with traditional financial institutions and would likely be the case with the Fed. In the case ends with a Ripple win, then a potential partnership is likely and would drive XRP above its previous ATH of 3.80.
Although Ripple has celebrated minor victories the final victory will come with a win with most analysts expecting Judge Torres to issue a final ruling in the next few months.
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