Comment by uses
3 years ago
Currently this works between banks only. Banks have reserves at the Fed, and those reserves are what gets adjusted when a FedNow transaction happens. The banks then adjust their own records on their customers' behalf.
3 years ago
Currently this works between banks only. Banks have reserves at the Fed, and those reserves are what gets adjusted when a FedNow transaction happens. The banks then adjust their own records on their customers' behalf.
The fed lists a number of service providers on their page. I assume they will now roll out some interfaces. Glad to see the US banking system start to catch up with the rest of the world ca mid 90s.
I believe the service providers are offering services to banks.
Walmart supported FedNow when it was in development. I'd bet they want to save those credit card fees they currently pay for people buying their groceries with them.
I think most if not all the participating banks are "receive only" so there's no one pushing any money yet.
So it's like a Bitcoin exchange, but with dollars!
It's like a centralized exchange in which funds can be seized, censored, and the participating brokers are licensed. Nothing like bitcoin.
It's also not like bitcoin because the exchange doesn't own dollars deposited at them and isn't run by a guy living in Dubai who's going to steal all of it.
this is an odd consensus because you just described how all bitcoin exchanges in the US operate.
they are centralized in which funds can be seized, censored, and they all have money services licenses just like their corresponding banks do.
right, not like bitcoin, like bitcoin exchanges, just like the person said and you somehow ignored.
far more similarities than differences for this comment and the other comments at your level to be focusing on the differences and confused about the existence of similarities.
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I don't see how this is anything like a crypto exchange, is there something I'm missing here?
Some crypto maximalists ignore many of the intrinsic aspects of crypto (decentralized consensus, cryptography, etc.) because in their use case, it's just 'digital money.'
So when a completely dissimilar example of 'digital money' comes up, they equate it to crypto, even though it lacks many of the intrinsic aspects of crypto.
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No, completely opposite. It is like a regular, centralized, and controlled by the government ledger[1] but faster, no more batch files at the end of the day like ACH and that is all.
Now is a matter of banks to pay the providers[2] to integrate with their systems and ledgers.
[1] https://www.youtube.com/watch?v=le8Me8AfK8k
[2] https://www.frbservices.org/news/press-releases/072023-fedno...
Some would say suspiciously so. Which is why some commentators think this is being implemented as a prerequisite of a CBDC.
The FedNow project was in the works long before any serious CBDC idea was conceptualized.
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It won't take long before all banks are using it. Once the banks are using it, employers will begin making payments using it. Once employees are receiving digital currency payments from employers, cash will end soon after.
I've been receiving my payments digitally from employers in the US for almost 20 years now.
I've never in my life received a wage in cash, as in, hard dollars.
...but with days of delay, where someone else is keeping the interest. And maybe charging a transaction fee.
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I received W-2 wages in cash in the military. I suppose I'm old.
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Huh? Employers pay employees via direct deposit in many (most?) cases. This isn’t any different… Either way it’s money moving from one bank account to another digitally.
Cash likely won't end unless legislatively forced to do so. The anonymity is too valuable.
Why are so many people gleeful at the idea of “cash ending”? What problems does cash cause that have people hating on it so much?
If it does end, Amazon gift vouchers? What would be a better substitute?