The Federal Reserve has announced that its upcoming instant payment system, FedNow, will be combined with the Metal Blockchain network. The announcement was made by the Metal Blockchain team on May 11, and will enable Metal users to instantly convert their funds to stablecoin and vice versa by utilizing the “send/receive” function of FedNow, media reports said.
The Federal Reserve of the United States has developed an instant payment system known as FedNow, which facilitates fast payments between banks at any time of the day. Currently, US residents can only make instant payments domestically through third-party apps such as PayPal and Venmo, or through crypto wallets.
However, the Federal Reserve has announced that a new instant payment service, FedNow, will be launched in July. Metallicus has developed Metal Blockchain, a crypto network that provides DeFi developers with options that comply with regulations. Metal Blockchain is built on BSA (Bank Secrecy Act) compliance and has an “X-Chain” subnet that enables developers to enforce asset transfer rules. For instance, tokens can be programmed to be transferred exclusively to US citizens or be untradable until the next day.
Metal Blockchain’s integration process with FedNow will form an interconnected “bank chain” system that is safe and doesn’t depend on oracles. The integration of Metal Blockchain with FedNow will establish a secure ecosystem that facilitates interbank communication for payment processing and settlement. Additionally, this ecosystem will remain linked to the FedNow system.
Additionally, the integration will equip banks for future central bank digital currency (CBDC) and enable “bank-issued stablecoins” to interact with a group of stablecoin currencies.
Marshall Hayner, CEO, and co-founder of Metallicus, is of the opinion that the controversy surrounding CBDCs is unfounded. He stated that the same level of scrutiny applied to the banking system would apply to CBDCs.
Certain politicians in the United States have alleged that FedNow could be the first step towards a blockchain-based CBDC that could infringe on privacy. However, the Federal Reserve has refuted any connection between FedNow and a CBDC.
