US Federal Reserve Will Launch Its Own Payment System

The US Federal Reserve Board on Monday announced that the Federal Reserve Banks will develop a new round-the-clock real-time payment and settlement service, called the FedNow℠ Service, to support faster payments in the United States.

The Board is now requesting comment on how the new service might be designed to most effectively support the full set of payment system stakeholders and the functioning of the broader U.S. payment system. The Board anticipates the FedNow Service will be available in 2023 or 2024.

“Everyone deserves the same ability to make and receive payments immediately and securely, and every bank deserves the same opportunity to offer that service to its community, FedNow will permit banks of every size in every community across the country to provide real-time payments to their customers.”

Federal Reserve Board Governor Lael Brainard

US Federal Reserve is Trying to Catch Up

After their recent attempt to ban bitcoin, the US Federal Reserve decided to create its own digital payment system. In a sense, this shows that they cannot deal with Bitcoin and other digital currencies, and for that reason they are going to set up their own payment system.

Τo be honest it is not something we didn’t expect. The question now is what the rest of the federations will do, as well as the other big countries. Europe is still considering bitcoin and other cryptocurrencies without a final decision being made. The UK has recently issued a guidance on cryptoassets. In China, things started to soften. Last month, a Chinese court recognized bitcoin as legal digital property.

source image by AgnosticPreachersKid

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