Including the Hedera-powered Dropp in the FedNow payment service by the Federal Reserve leaves the HBAR rallying by 8%. Today’s price rally is attributable to including the micropayments platform Dropp within the newly launched FedNow list of service providers.
Dropp involves a micropayment platform running on the Hedera Hashgraph. Its addition in the ‘showcase’ leaves Dropp among the privileged tech solutions in the Fed’s payment service.
Hedera-Powered Dropp Serving Digital Merchants at Granular Level
A revisit of the crypto firm allows merchants to accept payments to the extent of a penny. The Hedera Hashgraph-powered infrastructure facilitates micropayments. The infrastructure makes the payments practical and accessible. FedNow acknowledged that users’ credentials remain anonymous to the merchants that utilize the Dropp platform.
Since its unveiling in July, FedNow has attracted increased interest in providing instant payment services. The service accommodates financial institutions to offer safe and efficient payment services regardless of size instantly.
Dropp serves a unique niche targeting digital merchants who provide services and goods within the granular level. It serves a segment that considers transaction fees involving credit cards unaffordable. As such, FedNow profiles Dropp’s project description as opening up the digital economy involving micro-purchases.
Is Fed Leaning Towards Distributed Ledger Technology?
Including Dropp within the month-old FedNow Service Provider Showcase suggests increased interest by the Fed in distributed ledger technology. The US central bank seems dismissive of such signs through a disclaimer that the showcase website involves an informational purpose platform. Besides, the Fed indicates that including providers hardly translates to endorsing the respective project.
Including a disclaimer note hardly prevented the Hedera Hashgraph’s native token HBAR from surging 16% to a month high of $0.0659 on Monday, August 14. The token earlier tested the day’s high of $0.075249 before retreating to $0.064614, as illustrated by Goin Gecko. By press time 18:27 UTC, HBAR was exchanging hands at $0.068710, 4.2% up in the day.
Revisiting FeDNow Service Importance
FedNow involves a consumer-oriented service unveiled by the US Federal Reserve in July. It allows financial institutions and banks to create their services and products. The platform leverages distributed ledger technology to ease payments at granular and scale levels.
Its unveiling has attracted a mixed bag of reactions. Beyond the congratulatory statements, FedNow has attracted criticism from Custodia Bank chief executive Caitlin Long. She accuses the Fed of bending the law citing the inclusion of Amsterdam-based Adyen among the 35 financial institutions accessing the service.
Long alleges that the Fed granted Adyen a federal master account in July 2020, twelve months before its approval to create a branch within the US territory. In particular, she indicates that Adyen’s inclusion violates the requirements where European private companies should become payment providers in the US before their inclusion.
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