The U.S. Federal Reserve to Launch Real-Time Payments System

Comex Gold

For example, the current system can create problems for people paid by check at the end of a month, because they must deposit the check into their bank accounts and wait for it to be cleared before they can use that money to pay a utility bill at the start of the next month.

But the big banks' service, called the Clearing House, has been slow to reach smaller banks.

But those perks have yet to extend to every financial institution and business across the country.

The new service, dubbed FedNow, would compete with a private real-time payments system established by a group of large banks in 2017.

Fed Governor Lael Brainard said the Fed-run service would provide necessary competition, help ensure banks of all sizes have access to instant payment services, and improve the overall safety of the financial system.

White House trade adviser Peter Navarro on Monday urged the Fed to cut key rates by another three-quarters of a point to a full point by the end of the year to bring US rates in line with rates elsewhere. That's been one of the arguments for blockchain-based payment systems like Facebook's Libra, which would circumvent the need for third-party payment settlement.


Members of the Trump administration have also criticized Powell's performance as the leader of the Fed (a position he has held since early 2018 after being nominated by the president), blaming him for hurting USA economic growth.

The Retail Industry Leaders Association (RILA) retail trade association is publicly supporting efforts to develop FedNow. These delays cause stress, an over-reliance on credit, and higher fees paid by individuals and merchants.

"Some members of the cryptocurrency community are nonplussed by the Fed's plans to launch its own real-time payment system", wrote Ana Alexandre in Cointelegraph today, citing remarks by BTC buffs like Anthony Pompliano, who tweeted in response: "Bitcoin is already available". It hasn't directly admitted as much, but the fact that it wants to release a payments system to rival SWIFT and allow real-time settlements indicates it has a real concern over crypto's ability to revolutionize how money transactions are conducted.

Brainard said 90 percent of the comments it received supported a Fed system.

The Board is now requesting comment on how the new service might be created to most effectively support the full set of payment system stakeholders and the functioning of the broader USA payment system.

Related:

Comments

Latest news

Serena Williams again tops Forbes list of highest-paid sportswomen
And there were 15 female athletes, who made at least $5 million during that time period. Effective July 2018, access to full reports will only be available with a subscription.

NCAA issues rules for agents of National Basketball Association hopefuls
The NCAA has reportedly set new criteria for agents who wish to consult student athletes attempting to turn pro. Nothing will stop this movement and culture over here.

Samsung unveils new 7nm EUV processor for the Galaxy Note 10
At the event, Samsung is expected to launch the Galaxy Note 10, Galaxy Note 10 Plus , and its new Exynos chipset . The Exynos 9825 support dual camera (16MP + 16MP), a front camera of 22MP and a rear camera of 22MP.

Millionaire charged with wife's death arrested in Mexico
The 54-year-old was flown to California on Monday, Newport Beach police Chief Jon Lewis said in a news conference. When Chadwick is arraigned on Wednesday, the DA's office will ask the judge for no bail, Spitzer said.

Anti-Brexit MPs plotting to replace Boris Johnson with 'unity' prime minister
Johnson, meanwhile, has said he doesn't want to call a snap election. It has stepped up its preparations for a chaotic "no-deal" Brexit.

Other news