The U.S. Federal Reserve System Board is going to release a real-time payments and settlements service so as to spice up the payments infrastructure within the country.
A press release printed on Aug. 5 reads that the Board of Governors of the Federal Reserve System System has requested that Federal Reserve Banks develop a brand new interbank real-time settlement service to support faster payments within the U.S. The payment system is termed FedNow and can supposedly launch in 2023 or 2024.
By launching FedNow, the Fed aims to modernize the country's payment system with a real-time service that can transfer funds round the clock and on weekends and weekdays. The service can supposedly be available to each business and the general public.
The Fed believes that such a system can permit customers to a lot of flexibly manage their cash and create time-sensitive payments and is requesting to discuss the possible design and practicality of the new service. Commenting on the issue, Federal Reserve System Board Governor Lael Brainard said:
"Everyone deserves the same ability to make and receive payments immediately and securely, and every bank deserves a similar chance to supply that service to its community. FedNow can allow banks of each size in every community across the country to produce real-time payments to their customers."
Reaction from the community
A few individuals from the digital currency network are puzzled by the Fed's arrangements to dispatch its very own ongoing installment framework. Anthony Pompliano — fellow benefactor of crypto resource the executives firm Morgan Creek Digital Assets — tweeted, "Bitcoin is now out there."
Others were a lot of diplomatic with their response. Gabor Gurbacs, director of digital assets strategy at MV Index Solutions, a subsidiary of investment management firm VanEck, tweeted:
“Great that the @federalreserve is taking a forward wanting and intelligent stance concerning innovation in #DigitalAssets and #payments. i like to recommend considering the advantages of #Bitcoin, a functioning, reliable, trust-minimized base-layer for sound money.”
Other crypto-related firms are positioned to form a contribution to the project. In June, Ripple Labs was elected to the Federal Reserve’s quicker Payments Task Force steering committee. The initiative intends to create a “fast, safe and ubiquitous payments network within the U.S.”
The Federal Reserve System cut interest rates last week, a move that some specialists say might be partially chargeable for Bitcoin’s (BTC) recent price rally. Fundstrat world Advisors co-founder Tom Lee said:
“Bitcoin’s turning into progressively a macrohedge for investors against things that would get it wrong. Rate cuts are adding liquidity. Liquidity is pushing cash into all these risk assets and also hedges, that helps Bitcoin.”
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