The U.S. Central Bank wants to offer with FedNow banks a private Service for Transfers in real-time. The Federal Reserve Bank wants to launch „FedNow“ in the year 2023 or 2024. Americans now have 90 days to provide the Fed Feedback FedNow to. An important representative from the private sector has done this already.
By Christopher clover
6. August 2019BTC$11.615,00 -0.10%part Facebook Twitter LinkedIn xing mail
plans to The Federal Reserve Bank („Fed“), the introduction of a private service for the immediate processing of credit Transfers. The US Central Bank is aiming for a peaceful coexistence with the private sector, for example in the Form of The Clearing House. However, it is unclear whether „will come FedNow“ – the Name of the planned payment service – a Distributed Ledger technology, such as, for example, a Blockchain, to be used.
Financial inclusion… of banks
your project has the Fed on the 5. August presented in a press release. As a Motivation behind FedNow the US leads the American Central Bank, with the noble goal of financial inclusion. The Bank has, however, is less the consumer than the banks in mind.
Everyone deserves the same permission to make payments immediately and securely, and to receive, and each Bank deserves the same opportunity this Service to your community to offer. FedNow will allow banks of any size in every community across the country, your customers with real-time payments,
Lael Brainard, Governor of the Federal Reserve Board of the Fed announcement explains.
the Fed seeks peaceful coexistence with the private sector
The Foundation stone for FedNow a citizens ‚ survey conducted by the U.S. Central Bank last year put. In over 350 submitted comments, the overwhelming majority of the participants expressed for the introduction of a possibility by the Fed, real-time transfer.
[…] were in favour of over 90 percent that the Federal Reserve operates, in addition to the services of the private sector in a round-the-clock available a real-time payment and settlement service.
Now, U.S. citizens have again in 90 days, opportunity for comments at the Fed to submit.
competitor to the TCH already has on Fed’s announcement responds
so Far, the private consortium of banks The Clearing House (TCH) dominated in the USA in the sector of real-time transfers. TCH to include 24 institutions, among them the largest banks in the United States. The consortium has not let it take, to keep the same day of the FedNow-Announcement with its own press release about it. Therein TCH emphasized that also in your payment network (RTP Network) in principle, any custodian, regardless of size, can participate:
The network has been set up for all US Depositary banks and is available to you regardless of your size to reasonable terms (no quantity discounts or minimum volume requirements).
TCH’s wool to keep the efforts of the Fed with regard to FedNow in the eye, concentrating on the Expansion of the RTP network, the replica more.
Growing competition in a real-time Bank Transfers
The move by the Fed shows that the Central Bank can no longer ignore the growing pressure in the sector of real-time transfers. Not only Google and Apple have entered long as a strong Player in the market. With Libra, a global alternative monetary system on the horizon from the private sector. The banking giant J. P. Morgan tested the JPM Coin already, the benefits of Distributed Ledger technology for money Transfers between banks. The California-based FinTech company, Ripple aims with its products also decidedly on the banks.
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