The crypto community is buzzing with rumors about a potential partnership between Ripple and the Federal Reserve Bank of America. These speculations emerged just days before the Fed is set to launch its instant payment service, FedNow, in July. FedNow aims to provide participating banks with a modern instant payment solution, and it could potentially include Ripple among the fintech companies it services.
In a previous report by CNF, it was revealed that FedNow would be linked to Metal Blockchain, allowing Metal users to quickly convert funds to stablecoin and vice versa using FedNow’s “send/receive” feature. This partnership marked a significant milestone in bridging the gap between traditional banking systems and decentralized finance.
According to the list of FedNow financial institutions onboarded for the launch of its ISO20022 enabled real-time settlement on July 1st, several Ripple partners are included, such as ACI Worldwide, Finastra, and Volante Technologies. While this does not confirm a collaboration between Ripple and the Fed, it does indicate the potential for such a partnership.
Interestingly, one hint of a connection between Ripple and the Fed came from a comment made by Fed Chairman Jerome Powell during his semi-annual testimony before the US Congress. In his speech, Powell mentioned being a “Grateful Dead fan for 50 years,” to which Congressman Wiley Nickel responded, “I’ve found one universal truth – I like people who like the Grateful Dead.” This seemingly unrelated connection to Ripple was noted by Twitter users and has sparked speculation among the crypto community.
However, it is important to note that the establishment of FedNow and the adoption of blockchain-based solutions like Ripple could pose a challenge to the crypto industry. Additionally, FedNow’s upcoming launch also provides a framework for the eventual introduction of a Central Bank Digital Currency (CBDC), which may not bode well for cryptocurrencies and their users.
As for Ripple’s XRP price, it has seen a marginal change of less than 1 percent in the last 24 hours, trading at $0.48 at the time of writing. The ongoing legal battle between Ripple and the SEC, which seeks to classify XRP as a security, has restricted Ripple’s ability to form partnerships with traditional financial institutions. The outcome of this lawsuit will likely determine Ripple’s future partnerships and could potentially drive the price of XRP above its previous all-time high of $3.80 if Ripple emerges victorious.
While Ripple has achieved some minor victories in the legal proceedings, the final ruling by Judge Torres is expected in the coming months. A favorable ruling for Ripple could pave the way for potential partnerships, including with the Federal Reserve Bank of America.
In conclusion, the rumors surrounding a collaboration between Ripple and the Federal Reserve Bank of America have generated excitement within the crypto community. The launch of FedNow provides an opportunity for Ripple to showcase its technology and potentially secure partnerships with traditional financial institutions. However, the establishment of FedNow and the potential introduction of a CBDC may pose challenges for the broader crypto industry. Only time will tell whether these rumors will materialize into a significant partnership and how it will impact Ripple’s XRP price.
