FedNow payments network is tick, Fed cryptocurrency is not

• A digital dollar is not necessary at the moment according to Fed’s Mester.
• The new real-time payments network will just as robust as the current one.

The President of the Federal Reserve Bank of Cleveland, Loretta Mester is 100% in support of the creation of a real-time payments network. The new payments network could run side by side with the existing one with some banks choosing to stick to one or combine the two. However, questions are arising as to how small and big banks will interact within the new ecosystem.

She explained in an interview:

“What you’ll end up seeing is … some banks will be on both, and others will stick with one. But if we make make sure that the message sending is standardized, they’ll be able to switch if they want to switch, so there’s going to be room for both systems to be very robust systems.”

Discussions regarding central banks-backed digital assets are on the rise. China is already working on its own digital currency….