Ripple as a payment company that uses its digital token XRP in cross-border remittances has quite made a host of moves to remain technically relevant in its field, and such has so far been fruitful.
However, a supposedly big challenge regarding the Federal Reserve’s Plan to implement FedNow which will raise initial transfer limit to $25k recently emerged, and this indeed initiated lots of concerns in regards to XRP’s relevance in the future once the plan is eventually implemented.
This prompted a notable crypto analyst to address the supposed adverse effect which the implementation of this plan could have on the utilities of XRP.
US Federal Reserve Board Announces FedNow, the Real-Time Payments System
In a press release on 5th August, 2019, the United States Federal Reserve Board announced its plan to implement real-time payment system called FedNow.
According to the update, the service is under process and will not be available until 2024. The service which will be made accessible everywhere promises to come with trustworthiness, efficiency and lots more.
The upcoming inter-bank system will also fast-track the settlement and clearing processes for payments between banks. The update stated that this service will be available round-the-clock throughout the year with an initial limit of $25,000.
According to the Federal Reserve Board governor, Lael Brainard, the implementation of FedNow will enhance the performance of banks across the country and cross-border payment companies in creating fast, modern, safe, and innovative payment services.
FedNow Possible Implementation Raises Concern within XRP Community
Since the announcement was made on Monday, XRP community members have been inquisitive of the possible adverse effect which the implementation could leave on XRP utilities in the future.
The Google search keyword recommendations about the FedNow’s plan revealed the curiosity of XRP community, as shared by The Crypto Dog on Twitter.
He said “Curious to see Ripple’s response to Fed Now. It’s clear (at least some) XRP holders are feeling the heat – just check Google searches. Not trying to spread FUD, but looking forward to see how this plays out.”
Crypto Analyst Plays Down the Supposed Adverse Effect of FedNow Implementation on XRP
Credible Crypto, a popular cryptocurrency analyst, on Twitter swiftly responded to The Crypto Dog sentiment by refuting the envisaged negative impact which the emergence of FedNow could have on XRP.
He sentimentally referenced the fact that before FedNow could go live in 3-4 years’ time, XRP would have resolutely claimed all ground in the payment industry. He pointed that the planned $25,000 initial limit looks laughable, averring that the Federal Reserve Board seems not competing with Ripple.
He believes setting a such limit which XRP is free from, will prevent customers from using the proposed innovation.
Read his statement his below:
“Fed Now said to be able to be implemented in 3-4 years with a limit of 25k per transfer. By that time XRP will be dominating the space (if it is ever going to) and the 25k limit is laughable. Seems they are not targeting the same market at all.”