This could be huge news for the creators of the Ripple payment protocol as Ripple Labs, have been elected to the Federal Reserve’s Faster Payment Task Force Steering Committee. The company has though been playing vital role in helping out people get fast and safe payment solution for some time; however, the latest recognition will definitely boost its credentials.
According to the sources from the Fed the organization created the Faster Payment Task Force earlier this year to tackle the challenge of upgrading the United States’ outdated payment infrastructure. They believe that the payment infra lags behind Europe, and, in some cases, emerging markets such as China as well.
Therefore, they believe that the formation of the committee that helps execute and discuss a payment strategy laid out by the Fed earlier this year is the need of the hour. For the purpose they have now elected Ripple Labs. Nonetheless, the central bank’s main goal is upgrading the country’s domestic payment system used for e-check settlement i.e. Automatic Clearing House.
Developed in the 1970s, it takes 1-2 days for it to clear a payment, something that simply won’t do anymore in our fast-paced world, according to the Fed. Ripple Labs’ Ryan Zagone, head of research on the Business Development team admitted that it is a privilege to be selected by the Fed. He also said the company is looking forward to work with the government agency.
Zagone went forward and said that leveraging Ripple’s global experience as the task forces assess ways to increase speed, efficiency, access to, and competition in payments will help the Fed get better team to work with. To represent the interests of various stakeholders in the 300-plus-person task force, a steering committee has been elected by industry peers.
Ryan Zagone to be Representative of Tech and Nonservice Banking Provider Sector
Nonetheless, according to the announcement Ryan Zagone has been elected to represent the technology and Nonservice banking provider sector. He, alongside 15 other committee members, will lead discussions on how to bring real-time settlement to the U.S. payment system.
This is not for the first time that Ripple Labs is being associated with the Fed. In fact, it first got involved with the Fed’s payment initiative, at least to some degree, when participated in the call for information by the central bank during 2013 and 2014. Here it helped shape the later published payment roadmap.
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