Federal Reserve Teams Up With China’s Blockchain Ally For Instant Payments

The US Federal Reserve is moving forward with its real-time payment project FedNow Service by experimenting with the blockchain infrastructure.

On Tuesday, the Fed officially launched the FedNow Service Provider Showcase, which aims to provide financial institutions and users with a range of services to help them implement the FedNow Service, which will be launched in 2023.

At the launch, the showcase includes more than 70 profiles and service providers supporting instant payments, including a New York-based blockchain company focused on instant payment solutions, blockchain interoperability, and central bank digital currencies (CBDC). The platform is known for its involvement in Chinese blockchain projects, including collaboration with Suzhou City Municipal for the city’s blockchain infrastructure development.

Other providers in the showcase include services such as BNY Mellon Immediate Payments, Mastercard Track Business Payment Service and ePayments.

“We are the only blockchain company selected to date,” Sky Guo, CEO of Cypherium, told Coin-Crypto, adding that consumers can use Cypherium’s digital wallet or blockchain technology as part of the FedNow payment project. He also noted that Cypherium’s technology will also enable interoperability with other payment solutions:

“We will provide users with a digital wallet to access FedNow services, enabling FedNow to interact with other payment systems such as RTGS, blockchains, payment solution providers, and others.”

FedNow businessman Nick Stanescu be aware that Cypherium’s participation in the project “will help organizations identify and connect with partners they need to build the end-to-end solutions the market demands.”

Related: Fed’s Lael Brainard hints the US is leading the development of CBDCs

As previously reported by Coin-Crypto, the United States Federal Reserve Board has officially announced plans to release FedNow in 2019 with the ultimate goal of enabling U.S. banks of all sizes to make real-time payments to their customers by 2023.

In addition to FedNow, Cypherium is also a member from the US Faster Payments Council (FPC), an organization that aims to provide a globally inclusive payment system since 2019. According to Cypherium CEO, the only other blockchain related participant in the FPC is blockchain payment company Ripple.

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