The new settlement service will help boost the payment infrastructure in the U.S. and is expected to launch in 2023 or 2024.
The Federal Reserve System, a central banking system in the U.S., has recently announced its plans to launch a new real-time interbank payment system in the country. According to a press release, the Board of Governors of the Federal Reserve System has requested Federal Reserve Banks to develop a payment platform in order to support quicker payments in the U.S.
Sources cite that the new payment system, dubbed FedNow, is expected to be launched in 2023 or 2024 and would help revolutionize the country’s payment system by enabling real-time fund transfers anytime, on weekdays and weekends, for both business and general public.
Moreover, the Fed believes that a system like this will allow consumers to more flexibly manage their finances and make time-sensitive payments. It is also requesting comments on the possible design and functionality of the new service.
Speaking on the move, Lael Brainard, Board Governor, Federal Reserve, said that the FedNow would permit small and big banks in the country to provide real-time payments to their users. She claims that everyone is entitled to have access to safe and secure transactions.
However, some associates of the crypto currency community are confused by Fed’s plans to introduce its own real-time payment system. Few analysts came forward to suggest the benefits of Bitcoin, a functioning, reliable alternative for digital currency, which could be a great option compared to FedNow.
Meanwhile, some crypto-related companies are trying to make a contribution to the project. For instance, recently U.S. tech firm Ripple Labs was picked to be a part of Federal Reserve’s Faster Payments Task Force Steering Committee.
Incidentally, the Federal Reserve has also recently slashed the interest rates which could be the partial reason for Bitcoin’s recent price rally, cite experts.