The US Central Bank soon might adopt its own cryptocurrency. Today, we look into the future together - What is Fedcoin? How will function?
24 July, AtoZForex – The US Fintech companies have expressed their views in regards to the Blockchain, the key technology behind Bitcoin. Faster Payment Task Force has published a report, which states that fintech firms have explained how Blockchain can be utilized to make payments faster for the US Federal Reserve.
Blockchain in the US
The US Fintech companies have listed proposals in relation to the Fed Blockhain use. The proposals include Ripple, Eccho, Xalgorithm, Hub Culture, Kalypton Group, Nanopay Corporation and Thought Matrix Consulting.
Specifically, for the Hub Culture, Eccho, and Xalgorithms, the firms have suggested the use of distributed ledger technology-like solution with a Real-time Asset Interchange Network (RAIN) and Real-time Asset Interchange Ledger (RAIL). These can allow for end-to-end worldwide payment transactions.
Moreover, this includes a Unique Synchronized Identity (USI). The USI enables the connection of existing accounts with the potential. Such system eventually lowers the transaction costs and platform outlays. It also helps to reduce time to deploy supporting push and pull payments across the network.
Kalypton Group Limited and Eccho came up with a very creative solution. They propose a full transaction processing engine. Such approach will deliver functionality similar to Blockchain, yet will not have its limitations. This suggestion includes a configurable service layer, which executes multiple use cases. It also supports fast innovation by service providers.
What is Fedcoin? US Fed cryptocurrency proposal
However, there was one proposal that had the most significance. For WingCash Blockchain based proposal, the US Fed will need to use the digital currency. The WingCash Faster Payment Network is a software platform that will be under Fed and US government control. It will issue cryptocurrency or crypto Fed notes that will be tied to the internet domain (Fednotes.com).
The proposal for WingCash will enable businesses to issue and describe the features of digital brand cash.
The Founder and CEO of WingCash, Bradley Wilkes, has written the proposal. In case the Task Force will adopt it, the Fed will be acting further towards incorporating the "Fedcoin" concept.
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