A recent social media post by an XRP community member has sparked discussions about XRP and the FedNow network, the instant payment system launched by the Federal Reserve Bank in the US.
The post, by Crypto Value Hunter, detailed an instant XRP withdrawal from Uphold, a crypto exchange known for its support of XRP, to a bank account. The transaction description reportedly mentioned FedNow, leading to speculation about FedNow’s involvement in processing the XRP transaction.
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Just sent money from Uphold to my bank using #XRP. The transaction took place almost immediately. But to my surprise look who settled the transaction… before If pictures are worth 1000 words then you know what this means👀👀 👀 #FedNow @digitalassetbuy @DigPerspectives… pic.twitter.com/LTLa3HPwcX
— Crypto Value Hunter (@majesticboss55) April 1, 2024
This sparked excitement within the XRP community for two reasons. First, XRP’s strength lies in facilitating fast cross-border payments, which aligns with FedNow’s instant settlement feature. Second, the potential use of FedNow for XRP transactions hints at wider adoption within traditional finance.
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XRP Community Speculation and Explanations on FedNow
Further reports of similar instant XRP transfers from Uphold fueled the discussion. XRP community figures offered possible explanations. Chad Steingraber pointed to Ripple’s partnership with Uphold to improve the exchange’s cross-border payment infrastructure. He theorized that Ripple Payments might be leveraging FedNow through Uphold to enable instant XRP deposits to US bank accounts, but clarified that FedNow likely doesn’t use XRP directly for core transactions.
Important Clarification
It’s important to note that while Ripple partner Volante Technologies was involved in FedNow’s testing phase, there’s no current evidence of a direct partnership between Ripple and the Federal Reserve for XRP use within FedNow.
Highlighting the Bridge Between Crypto and Traditional Finance
While these claims need verification, the incident highlights the ongoing interest in potential bridges between cryptocurrencies and traditional financial institutions. This could pave the way for wider XRP adoption in the future.