Jump to content
Sign in to follow this  
quan

Fednow’s joint account

Recommended Posts

From the fed announcement yesterday, she said:

“The Federal Reserve provided a joint account to enable the private-sector operator to offer real-time payments. Moreover, today we are announcing our intent to explore the expansion of Fedwire Funds Service and National Settlement Service operating hours to support the efficiency of the joint account structure for the private-sector real-time gross settlement (RTGS) service and provide broader benefits. That said, the joint account structure, with its requirement of prefunding and settlement on a private ledger, is fundamentally different from the approach the Federal Reserve will use to settle transactions directly between banks.”

 

 Fednow is planing to provide the liquidity for the public with “joint account” but strangely, the joint account doesn’t need prefunding like a normal account.  

She said the  structure of the  “joint account” Fednow will use is fundamentally different. 

I think the term “ joint account” is deceiving us.  

I think the “joint account”actually could be Xpool, the joint of liquidity of market makers. 

What do you guys think the secret of the joint account that don't need prefunding and allow instant direct settlement between banks? Share your thoughts

2E642EAC-E335-475F-AB4E-159F2CCED3F1.jpeg

Edited by quan

Share this post


Link to post
Share on other sites

I think you are on the right track.

Could the expansion of the Fedwire Funds Service and National Settlement Service be a separate goal with a target completion date of the near future, aside from the 'new' system being developed by 2023?

Share this post


Link to post
Share on other sites

They migh simply make their own ledger with their own native token "Fedcoin" based on the XRP-ledger/Stellar model for domestic use. Interledger Protocol is the key here. If these banks can get a rate for international payments through the same API/connecion; Ripples global network, that is currently being built with corridors with instantly available settlement in every country for a fraction of the price of others will flourish.

 

Edited by mandelbaum

Share this post


Link to post
Share on other sites
48 minutes ago, xrp_sea said:

Sounds great, but I doubt it. The Federal Reserve wouldn’t want to rely on a small company like Ripple. I think it’s far more likely that they would copy Ripple’s concept and do it themselves.

Fed stated they will collaborate with private sector, fed is not trying to be a single entity that handle this task. 

From Fed’s announcement yesterday, she also said-

“We have provided vital support to the sole private-sector provider of real-time settlement for faster payments, and we will continue to do so.” 

She didn’t say it’s ripple but there is a very good chance that it is. 

Read the announcement yourself

https://www.federalreserve.gov/newsevents/speech/brainard20190805a.htm

 

Share this post


Link to post
Share on other sites
14 minutes ago, quan said:

Fed stated they will collaborate with private sector, fed is not trying to be a single entity that handle this task.  

From Fed’s announcement yesterday, she also said-

“We have provided vital support to the sole private-sector provider of real-time settlement for faster payments, and we will continue to do so.” 

She didn’t say it’s ripple but there is a very good chance that it is. 

Read the announcement yourself

https://www.federalreserve.gov/newsevents/speech/brainard20190805a.htm

 

I’m guessing that they’re talking about partnering with banks as they are part of the private sector. I hope you’re right, though. If so, this would send the price of XRP through the roof.

Share this post


Link to post
Share on other sites

"We are proud of our strong record of cooperating with and supporting private-sector services, while fostering competition for public benefit. We have provided vital support to the sole private-sector provider of real-time settlement for faster payments, and we will continue to do so. The Federal Reserve provided a joint account to enable the private-sector operator to offer real-time payments. Moreover, today we are announcing our intent to explore the expansion of Fedwire Funds Service and National Settlement Service operating hours to support the efficiency of the joint account structure for the private-sector real-time gross settlement (RTGS) service and provide broader benefits."  Who else but Ripple could "the sole private-sector provider of real-time settlement for faster payments..." be?  There was an article in the WSJ today that quoted the Fed Chairman, Jerome Powell as saying, "In many places the Fed operates alongside private-sector operators, so it wouldn't be unusual or out of keeping with how we've done things in the past."  I found the WSJ article very "curious" to say the least, as much of what it was describing sounded exactly as if they were talking about Ripple: without ever mentioning their name. Something's up, but it's hard to tell if this is a really really great thing, or it's something unexpected altogether.

Share this post


Link to post
Share on other sites
1 hour ago, Archbob said:

https://www.federalreserve.gov/newsevents/pressreleases/files/other20190805a2.pdf

Read Question 14:

They basically say that the Fednow system will have the Fed act as a holder for pre-funded accounts and settle everything that way.

The discussion panel from the announcement also said that they will have layers of different remit services so that they can compete each other and enhance the reliability (if one service system fail then the other can take over. )

From what I understand, Fednow only wants to remain as a neutral platform that provides liquidity for private sector remittance companies and small banks. 

As a qualified private sector service, it is possible for Xrp to source the liquidity from Fednow. 

 

 

 

Share this post


Link to post
Share on other sites

They describe exactly what they have planned elsewhere in the FAQ.  They plan to hold some of the reserves from each member bank and count it towards each bank's required reserves.  They will use those reserves from each bank to settle each other's transactions.  They can do this because they are the "bank of banks" and the banks keep their money with the Fed.  Only a central bank can do this, which makes it unique.  It does not require xRapid or xPool or xAnything, although I suppose they could use xCurrent to process the transactions quickly.

I am as pro-XRP as any one, but we need to accept that this particular use case isn't about XRP.  The tweets from the Ripple people are congratulating the Fed on waking up to the idea of 21st century technology.  They never had any designs on using XRP here because that's not the use case that XRP was designed for (cross-border payments).

Share this post


Link to post
Share on other sites
2 hours ago, ringer2 said:

The best argument in favor of it being Ripple is that Dilip excitedly retweeted it. 

The guy is all about modernization of payments... he was congratulating the Fed on slowly removing their heads out of their asses, nothing more.  If Ripple were ACTUALLY involved, he likely would have been dead silent.

Edited by Molten

Share this post


Link to post
Share on other sites
28 minutes ago, codiusrex said:

Seems like many are looking at connecting “Ripple” dots only inside the FedNOW (which makes no sense to me) but Brainard mentioned several times during discussion following her recent announcement that the Fed is focusing on the “plumbing” required for this project. 

Who might be the most suitable provider for enterprise real-time payment & settlement “plumbing” software for all of the banks connecting to the FedNOW Service?

Dilip Rao already knows the answer and tried to make this point in a couple of Tweets that are being skewed for BTC maxis arguments — for whatever reasons.

 All of this is in favor of @Ripple IMO. 

Look at the technology providers.

At the very least, Ripple is involved.

Screenshot_20190806-212429.png

Share this post


Link to post
Share on other sites

Create an account or sign in to comment

You need to be a member in order to leave a comment

Create an account

Sign up for a new account in our community. It's easy!

Register a new account

Sign in

Already have an account? Sign in here.

Sign In Now
Sign in to follow this  

×
×
  • Create New...