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Stablecoin adoption will be slowed by FedNow

Stablecoin adoption will be slowed by FedNow.

The widespread use of cryptocurrency is something everyone hopes will happen soon. Most likely are USD-pegged stablecoins. The market may not be prepared for widespread adoption after the disastrous collapse of Terra Luna and problems with other stablecoins like Tether. Yet, we’re still of the opinion that additional formats should be considered. Central Bank Digital Currency (CBDC) is still an intriguing concept for the United States government.

Cryptocurrency proponents may not welcome a centralized digital money, but it represents progress nonetheless. Completely digital currencies would normalize their use, exposing more people to coins like USDT and BUSD. The acceptance of digital currency that could replace the dollar is critical for the economy.

While many have welcomed the news of the FedNow payment system with open arms, its introduction could cause some concern in our neighborhood. Using FedNow, instant payments may be made, which will greatly improve some sorts of national economic transactions. With an instant payment mechanism, money for COVID relief, which have been held up due to postal delays and other circumstances, may be distributed immediately.

Using FedNow, businesses will be able to speedily pay independent contractors and third-party vendors, while individuals will have the option to pay for some services immediately. As a result, businesses won’t be as constrained by the time it takes to complete transactions, and they’ll have a better chance at succeeding.

The adoption of CBDC or any other cryptocurrency would be rendered pointless from the Federal Government’s perspective if FedNow were to be implemented. FedNow will serve a similar purpose and offer comparable features, but also giving the government more levers to manage people’s money.

Adoption at this rate cannot hope to compete with rapidly implemented solutions like FedNow. It has been established that narcotics and pornographic content can be purchased with cryptocurrency. The partnership between Binance and MasterCard is a step in the right direction toward mainstream use of cryptocurrency, but it is insufficient.

Orizu Augustine
Orizu Augustine is an experienced crypto writer working for Alltechcraft. Having passion for writing, he covers news articles from blockchain to cryptocurrency and iPhone and Samsung related articles.