FedNow Falls Short of Disrupting Crypto Industry

• FedNow launched in July 2023, aimed to disrupt crypto but failed.
• Crypto market cap increased by 59% since FedNow's launch.
• FedNow's features overlapped with blockchain value propositions.
• FedNow didn't displace most crypto assets, including XRP.
• XRP community lost hope in FedNow's impact on Ripple's blockchain.
• FedNow onboarded 900 institutions, but only 32 support payment processing.

Summary :
FedNow, the US Federal Reserve's 24/7 instant payments platform, launched in July 2023 with high expectations of disrupting the crypto industry. However, a year later, it is clear that FedNow has not lived up to its "crypto killer" reputation. While the service offers value propositions similar to blockchain, such as 24/7 uptime, payment irreversibility, high throughput, zero chargebacks, and low fees, it has not displaced or significantly impacted the crypto market. In fact, since FedNow's launch, the total market capitalization of crypto has increased by 59%. The XRP community, in particular, had hoped that FedNow would benefit Ripple's blockchain, but XRP has lost a quarter of its value since the platform's debut. FedNow has onboarded over 900 financial institutions, but only 32 organizations have been certified to support payment processing for them. Despite the initial hype, FedNow's impact on the crypto industry has been underwhelming, and the sentiment among XRP supporters is low. The Federal Reserve acknowledges that it is still early in the journey towards instant payment ubiquity.

Sources :

- Protos