FedNow US Instant Payments Service to Launch in July
This blog post will cover:
- Partnership with Metal Blockchain Network
The Federal Reserve will launch its FedNow instant payment system in July, according to the statement of the central bank. FedNow is a real-time payment system that banks and other financial institutions will be able to use. This solution looks like the government's answer to fast crypto payments.
Users criticize traditional bank transfers for being slow, and FedNow should solve this problem. This new system might be the first step for the introduction of the CBDC digital dollar. The former Biden adviser Daleep Singh recently said that the digital dollar will “crowd out the ecosystem of crypto”.
Partnership with Metal Blockchain Network
The Metal Blockchain team announced a partnership with FedNow. That integration will give users the opportunity to swap fiat to stablecoins and vice versa. Metal Blockchain is based on the Avalanche (AVAX) ecosystem. The developer noted that it will comply with the Bank Secrecy Law, as well as KYC and AML regulations.
The integration will be working on a X-Chain subnet. This is a secure environment that will allow developers to implement specific rules for assets. For example, this subnet might work only with USA citizens or set time limits and other settings. So far, both parties have not specified what restrictions payments will have.
