FedNow, the instant payment feature of Federal Reserve, will enter into integration with Metal Blockchain, as stated by Cointelegraph.
According to Cointelegraph, the integration will permit Metal customers to ensure conversion of funds to stablecoins and back again through FedNow’s “send/receive” facility. Reportedly, while FedNow is a United States Federal Reserve-backed payment mechanism, Metal Blockchain is a crypto network of Metallicus, dependent on a fork of Avalanche’s code.
Based on Cointelegraph’s information, no confirmation has been received on the reasoning behind FedNow’s integration with the payment system. Marshall Hayner, co-founder and CEO, Metallicus, stated that Metal and FedNow’s integration will enable development of “bank chains.” It’s believed that this step will allow communication between banks for management of payment transactions, while remaining intact with FedNow system.
Moreover, Cointelegraph noted that US politicians such as Ron DeSantis, Florida Governor, and Robert Kennedy Jr, a US presidential candidate, have criticised FedNow on account of a blockchain-backed CBDC disrupting privacy. However, Federal Reserve has ruled out any relations between FedNow and CBDC.
(With insights from Cointelegraph)