The United States Federal Reserve’s instant payment system, FedNow, continues to expand its showcase of service providers, recently adding Dropp, a micropayments platform built on the distributed ledger technology (DLT) platform Hedera Hashgraph. FedNow’s Service Provider Showcase section aims to connect financial institutions and businesses with service providers that can help them innovate and implement instant payment products using the FedNow Service. Dropp offers a digital solution for merchants to accept payments at reduced costs, utilizing DLT and regulated banking tech to eliminate the need for high transaction fees. However, the Federal Reserve clarifies that the inclusion of providers in the showcase does not imply any recommendation or endorsement.
FedNow showcases DLT-powered payments system as service provider
Introduction
The United States Federal Reserve’s instant payment system, FedNow, has recently added Dropp, a distributed ledger technology (DLT) platform powered by Hedera Hashgraph, to its list of showcasing service providers. This move aims to connect financial institutions and businesses with service providers that can assist them in innovating and implementing instant payment products using the FedNow Service.
Dropp added to FedNow Service Provider Showcase
On August 14, Dropp was officially added to FedNow’s website as a showcased service provider. Dropp is a micropayments platform built on the Hedera Hashgraph DLT platform. It offers a digital solution that enables merchants to accept payments at low costs, utilizing DLT and regulated banking technology. The inclusion of Dropp in the FedNow Service Provider Showcase demonstrates the Federal Reserve’s recognition of the value and relevance of DLT-powered payment solutions.
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Overview of Dropp
Dropp is a micropayments platform that leverages the distributed ledger technology of Hedera Hashgraph. It provides merchants with a digital solution that enables them to accept payments without incurring substantial transaction fees. By utilizing DLT and regulated banking technology, Dropp offers a cost-effective and efficient payment solution for merchants. Its digital solution provides various features and functionalities that enhance the payment experience for both merchants and consumers, making it a valuable addition to the FedNow Service Provider Showcase.
Federal Reserve’s disclaimer about showcase providers
While showcasing service providers on its website, the Federal Reserve has made it clear that it does not support or endorse any of the showcased providers. The inclusion or exclusion of a provider in the showcase should not imply any recommendation or endorsement by the Federal Reserve Financial Services (FRFS), which merely acts as the host for the showcase. This disclaimer serves to ensure that potential FedNow service participants understand the role of the Federal Reserve and the limited extent of its endorsement.
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Criticism from the crypto community
The addition of Dropp to the FedNow Service Provider Showcase has received criticism from the crypto community. Some members of the community express disappointment and hopelessness, believing that the partnership signifies a resignation to the idea of crypto as an alternative to the corruption present in traditional financial systems. While individuals may strive for improved financial situations, it is essential to balance this with the goal of maintaining a fair and open financial system.
Previous blockchain networks connected to FedNow
This is not the first time that a blockchain network has been connected to the FedNow service. Metal Blockchain, for example, announced its connection to FedNow in May. However, it was subsequently removed from the FedNow website just a few days after being added. The reasons behind Metal Blockchain’s removal remain unclear, but this development highlights the challenges and uncertainties associated with integrating blockchain networks into the FedNow service.
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Conclusion
The FedNow Service Provider Showcase serves as a platform for featuring DLT-powered payments system providers, such as Dropp. The addition of Dropp to the showcase signifies the Federal Reserve’s recognition of the potential of DLT in the payments industry. The showcase provides financial institutions and businesses with the opportunity to explore innovative payment solutions and collaborate with service providers. As the industry continues to evolve, it is likely that more developments and partnerships will emerge in the DLT and payments sectors, driving further innovation and convenience in instant payment products.