The Federal Reserve Board of the United States recently announced its plans to launch a settlements and real-time payments service as a way to improve the country’s payments infrastructure.
A recent press statement showed that the Board of Governors of the US Federal Reserve System has asked Fed Reserve Banks to create a state-of-the-art real-time interbank settlement service to augment faster payments in the United States.
The upcoming payment system will be called FedNow and is set to be unveiled in either 2023 or 2024.
With FedNow, the Federal Reserve plans to upgrade the US’ payment structure with a real-time feature that can transfer payments 24/7. The service will reportedly be available to businesses and the public.
The Fed Reserve that a payment platform like FedNow will give customers more flexibility when it comes to managing their funds and making payments that are time-sensitive. The Fed is also requesting feedback on the functionality and design of the upcoming feature.
Lael Brainard on the Topic
Lael Brainard, a Fed Reserve Board Governor, commented that everyone should have the capacity to receive and make payments swiftly and safely and that every bank needs to be given the chance to offer this service to the community. FedNow will make it possible for every bank in the country to provide its customers with real-time payments.
The revelation of a new payment structure has generated mix reactions. Several experts from the cryptocurrency community are bewildered by the Fed Reserve’s announcement since, as Morgan Creek Digital Assets’ Anthony Pompliano tweeted, “Bitcoin is already available.”