RATE Group | U.S. Federal Reserve Announces FedNow Instant Payments to Rival Cryptocurrency
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U.S. Federal Reserve Announces FedNow Instant Payments to Rival Cryptocurrency

12 Aug U.S. Federal Reserve Announces FedNow Instant Payments to Rival Cryptocurrency

Posted at 13:55h in Cryptocurrency News by

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The United States Federal Reserve announced their intent to enter the instant payments sector with FedNow, which will be open 24/7, but is not going to be launched until 2023 or 2024.

Instant Payments is actually nothing new for the U.S. Federal Reserve since they currently operate FedWire, which is a real-time gross settlement funds transfer system, but is only open five days a week, only available to accredited institutions, is more expensive, and is not available on mobile phones. FedNow is intended to address these shortcomings, being more friendly to both institutions and consumers and more competitive with current private alternatives.

Prominent Banks such as Capital One, Citibank, Wells Fargo, Bank of America, JP Morgan Chase and Deutsche Bank, also currently operate an real-time payments network (RTP) launched in 2017 with $1 billion USD, called The Clearing House. Interestingly, at the beginning of 2019 the Clearing House had only gotten 11 of its 24 owner…

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