Fed aims for 24/7 instant payment system in US

Fed aims for 24/7 instant payment system in US

Fed aims for 24/7 instant payment system in US

Trump regularly points to the stock market as proof his policies are helping the economy, but, with Wall Street down as much as 500 points early Wednesday, he shifted gears.

Donald Trump lashed out at the USA central bank on Wednesday, accusing the Federal Reserve's interest rate policy with holding back the economy from winning a trade war he is trying to wage with China. FedNow will enable customers from all segments of the community and banks of all sizes to make real-time payments across the country. An infrastructure that allows innovation and competition to flourish. He also asked that the Fed ensure its new system be interoperable with the private banks' existing one. Payments will be processed 24/7 at any time of the day.

We've reported on how cryptocurrency and blockchain systems have emerged as an alternative to the legacy global SWIFT payment system, and more recently, how Bitcoin is being considered as a digital alternative to equities that are being battered by trade protectionism.

"Facebook's Libra project raises numerous concerns that will take time to assess and address".

As cryptocurrency news has shown, the main problem facing the FED's plans is that a number of the country's largest banks have already invested more than $ 1 billion in the development of their own improved payment system, which now known as Clearing House Payments Co. Federal Reserve has realized that cryptocurrency poses a real threat to fiat payments.

Fed officials compared the plan to start a service called FedNow to the birth in the 1970s of the automated clearing house network, which now accounts for roughly 15% of all USA payments. We will engage with the industry through groups and forums to finalize the design and features of the service. In December 2018, FMI enthusiastically submitted comments strongly supporting the Fed's proposal to move forward with standing up a RTGS system here in the U.S. We sincerely thank the FED for listening to the voices of food retailers on why RTGS is the right step for a more competitive payment ecosystem. Real-time payments can improve the economy, grow small businesses, and help American consumers keep up with everyday needs.

The Federal Reserve wants to make paying bills and transferring money easier and faster.

FIN has long advocated for a more modern payment infrastructure.

She added: "We participated in the Fed's NY listening session and co-wrote a joint letter to the Fed governors and lawmakers urging support for real-time payments".

The Board's Federal Register notice and a list of frequently asked questions are attached.

Click to below to download speech.

. Governor Brainard's speech is available here and streamed online.

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