Fed Paper Sparks Speculation About Ripple's Role in Modern Payment Systems
The Federal Reserve system has published a paper on a Byzantine Fault Tolerant (BFT) database system that could enable high-speed financial infrastructure. Researchers from the Boston and San Francisco branches, alongside FRB NIT, wrote the discussion paper titled 'Heraclius: A Byzantine Fault Tolerant Database System with Potential for Modern Payments Systems.'
The study explores BFT consensus as an ideal architecture for secure financial systems, noting that a BFT-based system can theoretically achieve processing speeds of up to 110,000 transactions per second. Crypto analyst SMQKE highlighted the paper's findings and linked them to digital assets like XRP, XLM, and HBAR.
The Federal Reserve's FedNow service is a domestic instant payment infrastructure built for U.S. depository institutions, but it does not use or require XRP. The Federal Reserve has not issued any policy or press release indicating plans to adopt private cryptocurrencies into its monetary or payment systems.