Instant payments, no middle men are stable coins needed?

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We've all been there, sitting at a Cafe or at home and that text appears "can you spot me $50 until pay day" friend, sibling or family member. Or maybe even as a trader, selling good and needed to wait however many days to actually receive a payment from a sale. It's why cash is still king. It's instant. Here's the cash in your hand now and here are my things, no waiting needed.

It's long been a point of discussion for many over the years, why in the current world is there a wait for transfers and payments? How are these things not instant. Further impacted by weekends and public holidays. All due to banks and their processes and time required to undertake their transactions. Doesn't make much sense though.

However, all this is about to become a thing of the past in the US with the soon to launch FedNow an instant money transfer system that will enable US Citizens to transfer money to each other instantly.

It's probably important to note that this isn't a new advancement in the financial sector with 40 other nations leading in this space.

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In Australia we use Osko which utilises PayID to instantly transfer money 24/7 across banking and private sectors. As an Australian Binance utilises the service as well as a number of other cryptocurrancy exchanges.

I can also utilise the system to pay bills and settle debts as well as send people cash instantly. It was developed by Bpay which is our older network that uses to take two to 3 business days to settle cash transfers. You can read more about it Here

Instant transfer importance and relevance to Cryptocurrancy

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An important article has been published which goes into depth of what the Federal Reserve is attempting to achieve. It is also looking at community consultation for further development.

Which is an important development with the soon to be released FedNow transfer system you can read abit more about it Here

Instant payments and cryptocurrancy

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Along with the research into FedNow is also the FedCoin but as each day progresses its looking less likely that a FedCoin will actually be released.

With the Federal Reserve Vicr Chair Randal Quarles discussing why just one accepted coin and not many? He speaks to that a FedCoin may well help drive adoption and bring people to the sector but doesn't specifically see the need for just one coin. He is also talking to private sector development in the space rather than public.

He isn't convinced that the Feds should release a stable coin and doesn't see the benefits. Also that a FedCoin isn't necessary for mass adoption. You can read more about it Here he likens the current trend as Parachute pants and an ending phase.

Opinion

I have to some what agree with Quarles and his argument, I don't see the need for a government issues stable coin given there are multiple cryptocurrancies already in the sector. Now this doesn't mean that it's all open tender there will need to be some form of regulations to prevent people spinning up their own token and then heading over to a trader and buying goods with a falsely inflated token.

I guess this is where the focus is on current stable coins like the USDC and as my previous article how I reported on people's interest in it, it is looking like the preferred option for wide spread adoption.

There is also XRP, Stella, Cello and quite a few others that have started to enter discussions. But I think at the end of the day it will be upto users and the community to decide which one will be the future of block chain tech.

What are your thoughts? Drop me some comments below on the subject.

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The Fed would be better off making FedCoin more of a smart contract platform that the government can administer at different levels. It would be more efficient for things like birth certificates and real estate deeds. As this would be account-based, it would eliminate the need for social security numbers and such. Official documents could live as NFTs.

If they do persist in making a coin, I hesitate to call it a stablecoin because a Fed dollar will always be worth exactly one dollar, then it might actually speed up adoption of crypto. People would grow accustomed to not having a bank and being able to settle payments immediately by bypassing the banks. That's the type of convenience crytos offer, except that you can earn greater interest at the moment. They could become interchangeable as we would no longer have banks "protecting" depositors from sending money to crypto exchanges. Although, we would need to see what type of censorship the Fed would implement on spending one's own money.

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Thats a good idea with birth certs and stuff. How would it differ to traditional means of access and storage though? What can block chain tech do that current systems can't?

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For one, it would centralize and standardize the data. I think Cardano is doing something similar in Africa, tying identity to the blockchain.

This would simplify things like buying or selling a home. Being on the blockchain, you have perfect records in a Deed NFT that can be transferred to the new owner easily. It eliminates the need for title insurance because you can track the chain of ownership.

Or, imagine your car title is on the blockchain. If you sell the car, you simply transfer the title NFT to the new owner. The DOT would immediately know who the new owner is without having to go down to the office to change title.

Something as simple as a change of address could be instantly updated for all government agencies. Name changes, marriage status, and number of dependents.

With this data standardized, it serves as a trusted source of information for third parties who might need some information. In the same way phones ask for permission to access your camera, microphone, or contacts, a bank might ask for permission to access your contact information and ID photo on the FedCoin. Access would be permissioned. Any access would be recorded.

Over all, it potentially could make working with government much more efficient. We would save so much time otherwise spent in waiting rooms or on the phone.

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As much as I like stable coins, I think there is also issues with them as its possible for a bank run and algorithmic errors. With all the various stable coins, it gets a bit confusing to figure things out and it could get annoying.

Personally the government and fed also has similar issue so I don't even know if giving them full control is a good thing. I think a instant payment option is much better but the current financial system is outdated. I don't even know if they could make it and whether or not the fees would make people want to use it.

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We have a feeless instant payment system in place. I think with the recent news it's looking like they are trying to say why just accept one token when there are multiple. Be good if that was the process. Let the industry decide. Imagine using Leo to pay for items.

Would be great!

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Well it could happen if they incorporate HivePay. Hive Engine doesn't really have transaction fees.

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