Fedcoin’ Strikes Again: Fintech Companies Propose Use of Crypto to US Fed

In a report by the Faster Pay­ment Task Force, fintech com­pan­ies have out­lined how Block­chain tech­no­logy can be used to make pay­ments faster for the US Fed­eral Reserve.

In this art­icle, The Coin­Tele­graph looks at the com­pan­ies that sub­mit­ted their pro­pos­als includ­ing Kalypton Group, Ripple, Eccho, Xal­gorithm, Hub Cul­ture, Nan­o­pay Cor­por­a­tion and Thought Mat­rix Consulting.

Blockchain-based proposals

For Hub Cul­ture, Eccho, and Xal­gorithms, they pro­posed the use of dis­trib­uted ledger technology-like solu­tion with a Real-time Asset Inter­change Net­work (RAIN) and Real-time Asset Inter­change Ledger (RAIL) that will enable end-to-end global pay­ment transactions.

It includes a Unique Syn­chron­ized Iden­tity (USI) to link exist­ing accounts with the poten­tial to lower trans­ac­tion costs and plat­form out­lays and to reduce time to deploy across the net­work sup­port­ing push and pull payments.

Kalypton Group Lim­ited and Eccho, on the other hand, pro­pose a full trans­ac­tion pro­cessing engine, not just pay­ments. This solu­tion will deliver Block­chain-like func­tion­al­ity without its limitations.

Their pro­posal will incor­por­ate a con­fig­ur­able ser­vice layer that imple­ments mul­tiple use cases and sup­ports rapid, ongo­ing innov­a­tion by ser­vice providers.

Comeback of the “Fedcoin”?

Among the five Blockchain-based pro­pos­als, it was WingCash that had the most impact.

For WingCash, the Fed­eral Reserve will have to adapt to the use of cryptocurrency.

The WingCash Faster Pay­ment Net­work is a soft­ware plat­form that will be owned and oper­ated by the Fed­eral Reserve and the Gov­ern­ing Organ­iz­a­tion. It will issue digital cur­rency or digital Fed notes that will be tied to the inter­net domain (Fednotes.com).

WingCash’s pro­posal will allow busi­nesses to issue and define the char­ac­ter­ist­ics of digital brand cash.

WingCash’s pro­posal was writ­ten by its founder and CEO Brad­ley Wilkes. Should the task force adopt it, the US cent­ral bank will be tak­ing steps toward embra­cing the long-discussed “Fed­coin” concept.

While other cent­ral banks from around the world like UK, Rus­sia and China have already indic­ated interest in issu­ing their own crypto­cur­ren­cies, this may be the first time a pro­posal has been addressed dir­ectly to the US Fed­eral Reserve.

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