New Delhi: As per the reports, the Federal Reserve’s instant payment feature, FedNow, is set to integrate with Metal Blockchain, a crypto network operated by Metallicus. This integration will allow Metal customers to convert funds to stable coins and back again using FedNow’s “send/receive” functionality.
Although the reason behind the integration has not been confirmed, Marshall Hayner, CEO of Metallicus, believes that it will enable the development of “bank chains.” This development will allow banks to communicate with each other to manage payment transactions while remaining intact with the FedNow system.
However, some US politicians, such as Florida Governor Ron DeSantis and US presidential candidate Robert Kennedy Jr., have criticized FedNow for potentially disrupting privacy with a blockchain-backed CBDC. The Federal Reserve has denied any connection between FedNow and CBDC.
FedNow’s integration with Metal Blockchain is a significant development in the world of crypto payments. By allowing customers to easily convert funds to stablecoins and back again, it will make crypto payments more accessible to the general public. Additionally, the integration with FedNow will provide a more secure and efficient method of payment for Metal customers.
The development of “bank chains” through the integration of Metal and FedNow could also have broader implications for the financial industry. By facilitating communication between banks for payment transactions, it could lead to increased efficiency and reduced costs for financial institutions.
In conclusion, the integration of FedNow and Metal Blockchain is a step towards the mainstream adoption of crypto payments. Despite criticisms from some US politicians, this development could lead to significant improvements in the financial industry’s efficiency and security.
