The Federal Reserve has officially introduced FEDNOW, its real-time gross settlement system, in the United States, signaling a significant advancement in the nation’s payment system. This development may also hold promising implications for Ripple, as one of their clients, Volante Technologies, a pioneer in cloud-based payments and financial communications, has contributed to the creation of the FedNow service.
Ripple Partner Volante, Plans to Expand FEDNOW Cross-Border Operations Pending Regulations
The deployment of FEDNOW is expected to offer individuals and businesses faster and more efficient payment processing across the country. To ensure a smooth and error-free live environment, the decision was made to initially limit its activities to domestic transactions.
The introduction has been eagerly awaited and is seen as a crucial initial step in modernizing the U.S. payment system. The new technology operates in real-time, enabling instant fund transfers between banks, accelerating settlements, and enhancing overall financial efficiency.
Ken Montgomery, the First Vice President of the Federal Reserve Bank of Boston and the FedNow program leader has recommended further involvement from financial institutions. Global statistics reveal that the rapid payment ecosystem was valued at $100 trillion in 2021, with Asian nations like China and India dominating the market, and the United States joining this group somewhat later.
How Will This Affect Ripple (XRP)?
XRP is experiencing a bullish rally, and analysts have a positive outlook on its future. Technical analysts are employing the Elliott Wave theory to identify recurring long-term price patterns and investor psychology, aiding in predicting the direction of the trend.
Currently, XRP‘s price is in the fourth wave of a five-wave upward movement, based on the most probable wave count (white). This suggests that after the correction, the pace of the price increase is expected to accelerate, potentially reaching $1. At the moment, XRP is trading at $0.697.
It’s worth noting that this is not the first instance of a Ripple partner collaborating with the Fed for the development of FedNow payments. Ripple partners, including ACI Worldwide, Volante Technologies, and Finastra, have actively contributed to the development of FedNow.
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