What If Ripple’s XRP Becomes The Federal Reserve’s Preferred Technology In 2019

We have focused on Ripple’s XRP price for 2019. Next to this we looked at fundamentals, concluding that we see Ripple’s XRP on its path to be the largest crypto in 2019 or 2020. The current article takes a totally different viewpoint. The U.S. Federal Reserve is evaluating a new infrastructure for Interbank settlements. What if Ripple’s XRP would become the Fed’s preferred technology for settlement in 2019?

First of all a big shout out to the XRP community for making us aware of this update. The first part of this article is based on the one that appeared on XRP’s community blog.

Federal Reserve Faster Payments Task Force

The website of the Federal Reserve Faster Payments Task Force was meant to communicate progress on the Federal Reserve’s initiative to modernize its payment and settlement infrastructure. Ripple has a representative in its steering committee as explained a while ago.

The desired outcomes focused on speed, security, efficiency, cross border payments, and industry collaboration.

This task force published a call for submissions that took place from a large number of corporate and banking organizations.

The Faster Payments Task Force calls upon all stakeholders to seize this historic opportunity to realize the vision for a payment system in the United States that is faster, ubiquitous, broadly inclusive, highly secure, and efficient, with all service providers enabling ubiquitous receipt for end-user customers by 2020.

Ripple was one of those, and its submission received high marks specifically on its strength of cross-border settlement, arguably the most complex part of the settlement process.

Two months ago the U.S. Fed requested another submission, and below quote comes from this most recent submission:

“…  the Board of Governors of the Federal Reserve System (Board) is seeking input on potential actions that the Federal Reserve could take to promote ubiquitous, safe, and efficient faster payments in the United States by facilitating real-time interbank settlement of faster payments.

While the Board is not committing to any specific actions, potential actions include the Federal Reserve Banks developing a service for 24x7x365 real-time interbank settlement of faster payments;  and a liquidity management tool that would enable transfers between Federal Reserve accounts on a 24x7x365 basis to support services for real-time interbank settlement of faster payments, whether those services are provided by the private sector or the Federal Reserve Banks.

The Board is seeking input on whether these actions, separately or in combination, or alternative approaches, would help achieve ubiquitous, nationwide access to safe and efficient faster payments.”

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Currency Trader 3 months ago Member's comment

And what if it doesn't?