The US real-time payment system FedNow will launch in July, providing 24/7 service 365 days a year.
The Federal Reserve Bank of the United States has announced in a press release that it will officially launch the instant payment system FedNow in July. FedNow will provide 24/7/365 real-time payment services to meet the needs of businesses and individuals for instant fund transfers.
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FedNow vs. CBDC
In early March, Nellie Liang, the Under Secretary for Domestic Finance at the U.S. Department of the Treasury, mentioned in a speech at the Atlantic Council in Washington that officials from the U.S. Treasury Department, the Federal Reserve, and the White House will begin meeting regularly to discuss the possibility of a central bank digital currency (CBDC). The Federal Reserve has been conducting related research projects over the years, but the promotion of CBDC has always raised concerns such as privacy, requiring support from the executive branch, Congress, and the general public before issuance is possible.
Last August, Federal Reserve Board Governor Michelle Bowman mentioned in a speech that FedNow could potentially provide the functions that CBDC offers. Now that FedNow has finally been launched, will it be a test run or will it replace the functions of CBDC?
Related
- The British Financial Trade Association and banks successfully test CBDC, moving towards tokenization of securities next.
- The U.S. House of Representatives releases draft stablecoin legislation, proposing a temporary ban on the use of stablecoins backed by cryptocurrencies and urging research on CBDCs.
- Learning from AMM, the BIS Innovation Hub's Project Mariana aims to support cross-border foreign exchange transactions of multiple countries' CBDCs.