As a worldwide liquidity crisis threatens the foundation of fiat currency,
all eyes are on the world reserve currency,
USD.
Today, we're going to take a look at a bombshell connection
between the Federal Reserve's FedNow initiative
and a handful of key firms that are pulling the strings.
Let's get it!
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There is a killer on the loose.
A crypto killer!
This one's been training for years,
waiting in the shadows of the deep state to pounce.
FedNow has been hailed as a crypto killer by some and a CBDC by others,
but, in reality, it's neither.
The flow of money needs an upgrade
to become faster and more agile in a fast-changing world.
And Ripple Labs,
a blockchain company founded in 2012,
is directly connected to many pieces of the FedNow mystery.
For years,
we've seen Ripple building relationships with governments and institutions
with a focus in On-Demand Liquidity, or ODL.
ODL is a shadow empire and wasn't really discussed in financial news
until the arrival of record money printing in 2008,
emergency relief funds,
hundreds of billions spent on the war in Ukraine,
UN countries hoisting energy markets up in Western Europe
and numerous IMF bailouts for countries like Sri Lanka
that have been cast into civil unrest primarily over the cost of living
and the collapse of their currency.
Speed and liquidity of cash has become a necessity for countries across the world.
SWIFT currently handles over half of the world's high-value cross-border transactions
but has run into issues with high fees, speed,
and it lacks transparency on how much money will actually arrive at the other end.
It also does not perform clearing or settlement services,
which adds to the time delay the banks and customers experience.
This outdated system has created a bottleneck within world markets
and a "Ripple" effect that is felt profoundly in the digital economy.
One of the key upgrades we've seen coming from SWIFT
is the implementation of ISO 20022,
a standard for exchanging electronic messages between financial institutions.
Today, everything is expected to be lightning fast,
and Ripple potentially has found a multi trillion-dollar problem to solve.
The payments program FedNow is tapping 91 different firms for payment processing,
and many openly use the blockchain tech of Ripple
to give a dynamic facelift to the existing financial system.
The most fascinating part of this seemingly standard upgrade
is what you will find under the hood of this new machine.
An array of partnerships between Ripple and companies like Volante,
Fidelity instant payments services,
Euronet,
Finastra
and Cross River
have been chosen by the Federal Reserve to put this plan into action.
This web of connections dates back to 2014,
when Cross River partnered with Ripple,
and now they all find themselves in a select group
chosen to roll out the FedNow program.
Volante and Ripple began building the VolPay Ripple integration in late 2015,
which allows banks, treasuries and payment platforms
to send cross-border payments instantly
through Ripple's blockchain-based global payments network.
US dollar will be used in FedNow settlements.
And these partners will utilize Ripple's blockchain technology
to settle transactions in real time.
The aim is to supercharge the speed of money
and provide instant settled funds
by combining the power of blockchain with existing clearing houses
and the banking infrastructure.
These firms are bringing the speed of the Ripple ledger to the Federal Reserve
in a veiled CBDC type fashion.
But FedNow is far from the CBDC the markets have been anticipating.
A true CBDC is a direct liability to the central bank that requires congressional approval.
This has been estimated to take at least five years to develop
and is still years out for the US.
Instead,
FedNow is a payments processor
with focus on settling payments within the US market
and will serve as a testing ground for the Fedwire program,
which is coming in 2025 for international settlements.
What we see taking place is a layering of on and off-ramps
for the government to use as entry points for ledger technology.
FedNow is the first major step to actually begin this rollout in the US,
which is still, by far, the largest economy.
As FedNow prepares to roll out,
Ripple still finds itself in a long-standing and hotly contested lawsuit from the SEC.
But this timing begins to make sense as you dig deeper into statements
like what was said by the Faster Payments Task Force working with Ripple in 2017.
"The legal status of a blockchain transaction
has not yet, as far as I know, been ruled on by a court of law.
Until there is a challenge by an aggrieved party
and a court rules in Ripple's favor,
this remains an unsettled issue."
Could this lawsuit be timed to provide clarity right before a public launch of FedNow?
If not,
why would the program be able to move forward with Ripple connected in any way?
As the White House works on the action plan in response to Uncle Joe's recent executive order
on cryptocurrency regulation framework,
stablecoins and mixers have so far been the main target of policymakers.
It's not all bad for crypto in these conversations, it seems,
as a recent briefing from White House officials suggests
some digital assets could help facilitate faster payments
and make financial services more accessible,
but more work is needed to ensure they truly benefit underserved consumers
and do not lead to predatory financial practices.
While the average American runs and hides from crypto in this bear market,
the government escorting a handful of crypto firms will rise into mainstream adoption.
A new age of money is emerging.
ISO 20022 will be fully integrated by the Federal Reserve in March 2025.
Fedwire will also go active for cross-border global payments in March 2025,
creating a potential perfect storm for the next bull run.
Things are clearly bearish across the board for risk-on assets this exact moment in time,
but major shifts in the financial landscape are happening right beneath our feet.
And Ripple stands to be an unspoken centerpiece for this massive financial upheaval.
Reading between the lines on those connections
will help the savvy investor position themselves correctly ahead of this shift in money.
As of now, use of XRP within this new system remains unclear.
But if Ripple can grasp operations with domestic and international US payments,
there is no telling what this coin is capable of.
If you've been stacking XRP or other ISO tokens in this recent crash,
make sure to check out our Ledger deal to secure your crypto.
We've got a link down below if you want to check out Ledger.
And you better have some popcorn ready for the future of blockchain
because it's going to be one heck of a show.
That's all I got.
Be blessed.
BitBoy out.