Ripple, the decentralized digital currency platform has recently landed another solution which will help increase its popularity. As a payment firm that uses its XRP digital token in cross-border remittances, Ripple has now made moves in the sector to stay relevant. These moves by the Blockchain-based network has been fruitful so far.
XRP (XRP) Price Today – XRP / USD
But there’s now a big challenge relating to the Federal Reserve’s Plans to implement the FedNow solution which will increase the initial transfer limit to at least $25k. Indeed this latest development has resulted in concerns over XRP’s relevance now and in the future after the plan has been implemented. This led one notable crypto commentator to address the alleged adverse effects that FedNow implementation will have on XRP utilities
Federal Reserve Board Announces FedNow
Via a press release on August 5, the Federal Reserve Board revealed that it plans to implement a real-time payment system known as FedNow. Per the update, the making of the new service is in progress and won’t be available until the year 2024. The service will be made accessible to all and it promises trustworthiness, efficiency and more.
For the upcoming inter-bank system, users are able to fast-track the settlement processes for payments inter-bank. The update sighted that the new service will be made available round-the-clock through the whole year. The initial limit will be $25,000.
According to Lael Brainard the governor of the Federal Reserve Board, the implementation of FedNow initiative will enhance the overall performance of banks throughout the country as well as cross-border payment companies. Because the company will be creating fast, innovative payment solutions for consumers.
FedNow Initiative Raises Concerns in the XRP Community
Since the Fed made the announcement this past Monday, the XRP community members have had mixed reactions about it. Some of them have become inquisitive of the adverse effects of the initiative on XRP utilities in the near future.
Additionally, the Google search keyword recommendations for the FedNow’s initiative has revealed that XRP community is unsettled. This is according to what was shared by The Crypto Dog via his Twitter handle. He said,
“I am curious to see the response Ripple has to the FedNow initiative. It is clear (at least some extent) that XRP holders have started to feel the heat. Just check the Google searches and you’ll see. Not trying to generate FUD, but I am looking forward to how this whole thing plays out.”
The Crypto Dog Lays down the Possible Adverse Effects of the FedNow’s Initiative
Credible Crypto, another popular cryptocurrency commentator on Twitter responded quickly to The Crypto Dog’s sentiment on the matter. He began by refuting the assumed negative impact that the emergence of the FedNow might have on XRP utilities.
He referred to the fact that before the FedNow could launch in about 3 to 4 years’ time, Ripple’s XRP would have claimed all ground and become bigger in the payment sector. He pointed out that the Fed’s planned $25,000 initial limit is actually laughable. That the Federal Reserve Board doesn’t seem to be in competition with Ripple.
The analyst believes setting a specific limit where XRP is free from, can help prevent users from depending on the proposed innovation by the Fed.