- Hedera Hashgraph is now part of the US Federal Reserve’s new payment network, FedNow, due to its integration with Dropp, a payment service built on Hashgraph.
- Following the announcement, Hedera Hashgraph’s price shot up by over 15%, marking a nearly 50% rise in a month.
The New Age of Payments: FedNow Embraces Blockchain
The world of finance and payments is continually evolving, and the latest testament to this is the inclusion of Hedera Hashgraph in FedNow, the US Federal Reserve’s newly unveiled payment network. Having launched in July 2023, FedNow epitomizes the modern vision for financial transactions, offering “real-time payments, 24/7, every single day of the year.” This state-of-the-art platform is already garnering massive traction, boasting partnerships with 57 of the most substantial US banks.
Diving Deeper: Hedera Hashgraph’s Significance
The crux of this integration lies in Dropp, a payment service fundamentally built atop the Hedera Hashgraph platform. The announcement of this union heralded a significant uptick in Hedera Hashgraph’s value, witnessing an upward trajectory of over 15% shortly thereafter. If we expand the time frame to a month, that surge amplifies to an impressive near-50%.
Beyond FedNow, Hedera Hashgraph has been on a partnership spree, striking alliances with industry giants like Hyundai, Kia, and even Mastercard in recent weeks.
However, what is Hedera Hashgraph, and why is it making waves?
Established in 2017, Hedera Hashgraph promises a revolution in the blockchain domain. It offers a tantalizing blend of minimal fees and maximal speed. Instead of being a traditional blockchain, it brands itself as a “Blockchain 2.0,” leveraging a novel algorithm known as Hashgraph.
For those unfamiliar with blockchain, it’s a distributed ledger technology that records transactions across multiple devices to ensure transparency and security. Hedera Hashgraph enhances this concept with its innovative algorithm, aiming for a faster and more efficient system.
Adding credibility to its operations, Hedera Hashgraph’s blockchain is steered by a council of global corporate heavyweights. Think Google, Boeing, IBM, Ubisoft, and several others, underscoring the platform’s gravitas.
However, as with every innovation, it’s not without its detractors. Some industry experts raise eyebrows at FedNow’s operations, dubbing it a “Central Bank Digital Currency (CBDC) via a backdoor.”
This integration signifies the marriage of traditional banking with modern-day blockchain innovations, reinforcing the fact that blockchain’s influence in the financial world is only set to grow.
