Posted 8/22/2023, 2:10:00 PM

FedNow Is a Reminder That Payments Aren’t Crypto’s Differentiator

The value proposition of using blockchain for basic payment services is unappealing due to the high costs, network congestion, and the availability of traditional payment systems with advanced features. However, blockchain payments may have value in non-fiat transactions and in integrating payments with the delivery of goods or services.

coindesk.com

Relevant topic timeline:

9/8/2023

Could blockchain have prevented Nigeria's naira crisis? Experts point to decentralization benefits

Blockchain technology can help solve economic problems in Nigeria, including currency flow shortages and the decision to print new naira notes, by allowing for decentralized finance and citizen control over their own money and economy.

9/17/2023

Fed Launches Instant Payment System FedNow to Modernize Financial Infrastructure, Though Blockchain Solutions Offer More Open Models

The U.S. Federal Reserve has launched FedNow, the country's first government real-time payment system, allowing banks and credit unions to instantly transfer money for their customers and improve inter-bank and retail transactions, although concerns remain about competition with private-sector entities. However, while FedNow does not use blockchain technology, its goal aligns with blockchain innovations of enabling instant peer-to-peer transfers and low-cost payments, and blockchain projects may benefit from leveraging FedNow's infrastructure. Nonetheless, decentralization and user-first approaches in Web3 payment systems could offer greater financial inclusion and transform the payments space.