- Dropp, a Hedera-based micropayments platform has been added as a FedNow Service Provider Showcase, enabling instant payments.
- FedNow is increasingly seeking blockchain technology due to its similar goals of instant peer-to-peer transfers and low cost.
FedNow, a real-time government payment system in the U.S. continues to make headlines just months after its launch. Developed by the Federal Reserve, the payment system seeks to offer instant payment transfers at low costs. Banks and other financial institutions onboarded on the platform are able to transfer customer funds instantly and at low costs, empowering businesses and individuals to send and receive money. In addition, banks can build more products that benefit customers on the platform.
A lot of these features and advantages are offered by financial technology companies like PayPal and Venmo. However, while funds can be transferred from wallet to wallet in a majority of these platforms, they cannot be withdrawn through the bank instantly. FedNow not only solves liquidity, and speed but also removes withdrawal limitations. But similar to the FedNow, blockchain technology, has already emerged as an ideal candidate for instant peer-to-peer transfers and low-cost payments. Furthermore, by selling native tokens offered on blockchains, users are able to access funds instantly.
Owing to the blockchain technology advancement in the private sector, it is no surprise that FedNow is working with blockchain companies and projects. Notably, FedNow is not a blockchain nor does it use blockchain technology. Additionally, no blockchain project was featured as an early adopter of the new platform. However, listed in the Service Provider Showcase blockchain projects include Tassat, Metal Blockchain, and Dropp.
The FedNow Service Provider Showcase is an online resource connecting financial institutions and instant payment service providers. Dropp, a Hedera-based micropayments platform was recently featured on this list. This is an indication of the urgency to make FedNow a success and a demonstration of its trust in the existing blockchain technology project.
We're thrilled to be featured in the #forbes article,
"The FedNow Service Provider Showcase, an online resource connecting financial institutions and instant payment service providers, recently featured Dropp, a #Hedera-based micropayments platform." https://t.co/aaJIPZCCy1— Dropp (@droppcc) September 18, 2023
The launch of FedNow and its utilization of blockchain technology highlights the transformation in the digital finance era. In fact, about 80 percent of global financial leaders plan to use crypto for their businesses over the next three years. One of the main reasons why businesses and financial leaders will be inclined to utilize blockchain projects and cryptocurrencies is the fact that unlike FedNow which is centralized and under the control of the Fed, blockchain projects are decentralized, global, and offer greater financial inclusion.
For Hedera-powered Dropp, the recent addition to FedNow is a major step for the project. It is a demonstration of its utility as well as a great step towards mass adoption. It further showcases Hedera’s innovation in the blockchain space and promotes acclaim. This could help drive the project’s native token HBAR to rally and possibly revisit its all-time high of $0.569229 reached almost two years ago. At the time of press, the altcoin is exchanging for $0.050440 after a nearly 2 percent drop in the last 24 hours.
