Fed launches its own payment system

The U.S. Federal Reserve System announced the launch of its own payments system, FedNow Service.

According to the release, banks and financial institutions can register and use the tool to transfer money instantly to their customers ‘at any time of day and on any day of the year’.

“The Fed created FedNow so that in the coming years everyday payments would be processed faster and more conveniently. Over time, as more banks decide to use this new tool, the benefits for individuals and businesses will include the ability for a person to receive their paycheck immediately or for a company to have instant access to funds after paying a bill,” said Federal Reserve Chair Jerome Powell.

The Fed had stressed earlier that the FedNow Service is not linked to a CBDC. The Fed has not yet decided on the launch of CBDC.

Впервые о разработке FedNow Service Федрезерв сообщил в августе 2019 года.

Robert F. Kennedy Jr., a candidate in the current US presidential race, criticised the idea of launching a digital dollar and wrongly linked it to FedNow Service.