Faster Payments Task Force, a task force created by the Federal Reserve in May 2015, has released a new report that provides insights from the submitted solution proposals on implementing faster payments in the United States.
The task force solicited proposals in early 2016 for end-to-end faster payments solutions that could address the need for safe, ubiquitous, faster payments. McKinsey & Company was selected to conduct a comprehensive assessment of each solution against the task force’s Effectiveness Criteria.
While a number of proposals put forward by companies including Hub Culture, Ripple, Kalypton Group Limited, recommended leveraging blockchain technology, a number of companies endorsed the concept of central bank digital currency.
Thought Matrix Consulting proposed, “A central bank issued electronic currency, Money Modules (MM), based on blockchain technology that features standardized software, data modules and electronic wallets.”
WingCash wrote: “A software platform that would be owned and operated by the Federal Reserve and the Governing Organization. The Federal Reserve would issue digital currency (digital Fed notes) and is tied to the Internet domain (Fednotes.com).”
On the basis of the assessment of the proposals, the report found that there was a wider variance in agreement for proposals that addressed a very specific user group or introduced a new payment system and/or digital currency.
The task force, in particular, recommended continued research and analysis of a range of applicable emerging technologies used for faster payments, including digital currencies and distributed ledger technologies.
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