The Federal Reserve of the United States is moving forward with its real-time payment initiative FedNow Service by beginning to experiment with blockchain technology.
The Fed formally opened the FedNow Service Provider Showcase on Tuesday, with the goal of providing financial institutions and customers with a variety of services to assist them in implementing the FedNow Service, which is set to start in 2023.
At the time of its launch, the showcase features more than 70 profiles and service providers that support fast payments, including a New York-based blockchain startup focused on instant payment solutions, blockchain interoperability, and central bank digital currencies (CBDC). The platform is well-known for its involvement in Chinese blockchain projects, such as its collaboration with Suzhou City Municipal for the development of blockchain infrastructure in the city.
BNY Mellon Immediate Payments, Mastercard Track Business Payment Service, and ePayments are among the other suppliers featured in the presentation.
“We are the only blockchain firm chosen so far,” Cypherium CEO Sky Guo told Cointelegraph, adding that as part of the FedNow payment project, consumers would be able to use Cypherium’s digital wallet or blockchain technology. He also mentioned that Cypherium’s technology will be compatible with various payment solutions:
“We will provide a digital wallet through which consumers will be able to access FedNow services, allowing FedNow to engage with various payment systems such as RTGS, blockchains, payment solution providers, and others.”
FedNow business executive Nick Stanescu stated that Cypherium’s involvement in the initiative will assist “organizations in identifying and connecting with partners they’ll need to construct the end-to-end solutions the market demands.”
The Federal Reserve Board of the United States officially announced plans to distribute FedNow in 2019, with the eventual objective of allowing U.S. banks of all sizes to make real-time payments to their customers by 2023.
Aside from FedNow, Cypherium has been a member of the United States Faster Payments Council (FPC), an organization dedicated to providing a global inclusive payment system, since 2019. The only other blockchain-related partner in the FPC, according to Cypherium CEO, is blockchain payment business Ripple.