{"id":564314,"date":"2023-03-16T06:08:56","date_gmt":"2023-03-16T03:08:56","guid":{"rendered":"https:\/\/en.buradabiliyorum.com\/federal-reserve-confirms-july-launch-for-fednow-instant-payment-service\/"},"modified":"2023-03-16T06:08:56","modified_gmt":"2023-03-16T03:08:56","slug":"federal-reserve-confirms-july-launch-for-fednow-instant-payment-service","status":"publish","type":"post","link":"https:\/\/buradabiliyorum.com\/en\/federal-reserve-confirms-july-launch-for-fednow-instant-payment-service\/","title":{"rendered":"# Federal Reserve confirms July launch for FedNow instant payment service"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_85 counter-hierarchy ez-toc-counter ez-toc-custom ez-toc-container-direction\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-6a3dc6380cdcb\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #dd3333;color:#dd3333\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #dd3333;color:#dd3333\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-6a3dc6380cdcb\" checked aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-1'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/buradabiliyorum.com\/en\/federal-reserve-confirms-july-launch-for-fednow-instant-payment-service\/#%E2%80%9D_Federal_Reserve_confirms_July_launch_for_FedNow_instant_payment_service_%E2%80%9C\" >&#8221; Federal Reserve confirms July launch for FedNow instant payment service &#8220;<\/a><\/li><\/ul><\/nav><\/div>\n<h1><span class=\"ez-toc-section\" id=\"%E2%80%9D_Federal_Reserve_confirms_July_launch_for_FedNow_instant_payment_service_%E2%80%9C\"><\/span>&#8221; Federal Reserve confirms July launch for FedNow instant payment service &#8220;<span class=\"ez-toc-section-end\"><\/span><\/h1>\n<div class=\"post-content\" data-v-48054ca8>The United States Federal Reserve has confirmed a July launch date for its long-awaited instant payments system, seen by some as an alternative to central bank digital currencies (CBDCs) and stablecoins.<\/p>\n<p>The instant payment network will settle payments in seconds and can support transactions between consumers, merchants and banks. It does not rely on blockchain <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/technology\/\" data-internallinksmanager029f6b8e52c=\"4\" title=\"Technology\" target=\"_blank\" rel=\"noopener\">technology<\/a>.<\/p>\n<p>It&#8217;s a significant step for the government as it is controlled by the Federal Reserve Bank, as opposed to Clearing House\u2019s RTP network which is operated by a consortium of large banks.\u00a0 <\/p>\n<blockquote class=\"twitter-tweet\">\n<p lang=\"en\" dir=\"ltr\"><a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/twitter.com\/federalreserve?ref_src=twsrc%5Etfw\">@federalreserve<\/a> <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/twitter.com\/FRBservices?ref_src=twsrc%5Etfw\">@frbservices<\/a> announce July launch for the FedNow Service: <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/t.co\/a7kPqxkS7Q\">https:\/\/t.co\/a7kPqxkS7Q<\/a><\/p>\n<p>\u2014 Federal Reserve (@federalreserve) <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/twitter.com\/federalreserve\/status\/1636110208878379010?ref_src=twsrc%5Etfw\">March 15, 2023<\/a><\/p><\/blockquote>\n<p><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script>According to a March 15 announcement, the U.S. Fed said the debut of FedNow is set for July with the U.S. Treasury and a \u201cdiverse mix of financial institutions of all sizes\u201d ready to use the network from launch.<\/p>\n<p>The Fed said it will \u201cbegin the formal certification of participants\u201d during the first week of April in preparation for the launch. <\/p>\n<p>\u201cEarly adopters will complete a customer testing and certification program, informed by feedback from the FedNow Pilot Program, to prepare for sending live transactions through the system,\u201d the announcement reads. <\/p>\n<p>FedNow was announced in 2019 and will provide round-the-clock, real-time gross settlement by funneling commercial bank money from a sender through a Fed credit account to its recipient. It also has built in features such as fraud risk management. <\/p>\n<blockquote class=\"twitter-tweet\">\n<p lang=\"en\" dir=\"ltr\">if you like bank runs in the age of <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/social-mediaa\/\" data-internallinksmanager029f6b8e52c=\"1\" title=\"Social Media\" target=\"_blank\" rel=\"noopener\">social media<\/a> you&#8217;re going to love bank runs in the age of fednow<\/p>\n<p>\u2014 nic carter  (@nic__carter) <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/twitter.com\/nic__carter\/status\/1634770876494147584?ref_src=twsrc%5Etfw\">March 12, 2023<\/a><\/p><\/blockquote>\n<p><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<p>Following the official launch, the Federal Reserve outlined that it will push to onboard as many as financial institutions as possible in order to increase the availability of instant payments.<\/p>\n<p>&#8220;The launch reflects an important milestone in the journey to help financial institutions serve customer needs for instant payments to better support nearly every aspect of our economy,&#8221; noted Tom Barkin, president of the Federal Reserve Bank of Richmond and FedNow Program executive sponsor, as part of the announcement. <\/p>\n<p>Some see the FedNow service as tackling a problem that both stablecoins and CBDCs seek to solve too.<\/p>\n<p>The FedNow program however doesn\u2019t use blockchain tech, while the Federal Reserve is known to have a cautious and skeptical view on stablecoins.\u00a0<\/p>\n<figure><img decoding=\"async\" src=\"https:\/\/s3.cointelegraph.com\/uploads\/2023-03\/1a3ddcfe-cf08-4b99-976a-a784ae7654f8.PNG\"><figcaption style=\"text-align: center;\"><em>Tweet from Meltem Demirors on FedNow. Source: Twitter<\/em><\/figcaption><\/figure>\n<p>One of the major banking payment rails servicing U.S. crypto companies in the Silvergate Exchange Network (SEN) was shut down earlier this month following Silvergate\u2019s collapse. <\/p>\n<p>As it stands, SEN competitor SigNet from Signature Bank is still <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/www.scmp.com\/tech\/policy\/article\/3213425\/signature-banks-real-time-crypto-payment-system-signet-which-served-coinbase-circle-still-online-now\">operational<\/a> despite the bank\u2019s forced closure on March 13, however, its fate is up in the air, while a number of companies have reportedly fled from the network following Signature\u2019s troubles. <\/p>\n<blockquote class=\"twitter-tweet\">\n<p lang=\"en\" dir=\"ltr\">Exactly.<\/p>\n<p>Silverbank had Silvergate Exchange Network.<br \/>Signature had Signet.<\/p>\n<p>Both were private networks for companies to transfer value between each other using digital assets. Where are both now?<\/p>\n<p>These companies enabled alternative currencies that threaten a CBDC and FedNow.<\/p>\n<p>\u2014 Damon Nam (@damonnam) <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/twitter.com\/damonnam\/status\/1636150037657837568?ref_src=twsrc%5Etfw\">March 15, 2023<\/a><\/p><\/blockquote>\n<p><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<p>FedNow could also stand in place of a central-bank-issued digital currency.<\/p>\n<p>Federal Reserve Vice Chair Lael Brainard <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/www.youtube.com\/watch?v=zkPq0I1cS2c&amp;t=1596s\">emphasized<\/a> during a House of Representatives Committee on Financial Services hearing in May 2022 that a CBDC would take far longer to get off the ground than FedNow due to regulatory hurdles. <\/p>\n<p>\u201c[if] Congress were to decide\u2026 to issue a central bank digital currency, it could take five years to put in place the requisite security features, the design features,\u201d she said. <\/p>\n<p>She added that FedNow will serve many of the same functions as a CBDC anyhow. <\/p>\n<p><strong><em>Related:\u00a0Tassat blockchain to join FedNow service with B2B on-ramp as pilot prepares for launch<\/em><\/strong><\/p>\n<p>Fed chair Jerome Powell also <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/www.youtube.com\/watch?v=5hrcZJTLfCE\">spoke<\/a> before the House Financial Services Committee on March 9 and suggested that a potential U.S. CBDC is still quite some time away. <\/p>\n<p>\u201cWe\u2019re not at the stage of making any real decisions,\u201d he said, adding that \u201cwhat we\u2019re doing is experimenting in kind of early stage experimentation. How would this work? Does it work? What\u2019s the best technology? What\u2019s the most efficient?\u201d<\/p>\n<p>Commenting on FedNow however, he stated that \u201cwe\u2019ll have real-time payments in this country very, very soon.\u201d <\/p>\n<p><template data-name=\"subscription_form\" data-type=\"markets_outlook\"><\/template><\/div>\n<blockquote><p><strong><span style=\"color: #ff6600;\">If you liked the article, do not forget to share it with your friends. 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The instant payment network will settle payments in seconds and can support&#8230;<\/p>\n","protected":false},"author":1,"featured_media":564315,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"fifu_image_url":"https:\/\/images.cointelegraph.com\/cdn-cgi\/image\/format=auto,onerror=redirect,quality=90,width=1200\/https:\/\/s3.cointelegraph.com\/uploads\/2023-03\/d5e20353-25b1-4bf8-9167-24a91cac0752.jpg","fifu_image_alt":"","footnotes":""},"categories":[1],"tags":[74888,75046,74889,71939,70550,70934],"class_list":["post-564314","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-general","tag-banking","tag-cbdc","tag-payments","tag-banks","tag-federal-reserve","tag-regulation"],"_links":{"self":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/564314","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/comments?post=564314"}],"version-history":[{"count":0,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/564314\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media\/564315"}],"wp:attachment":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media?parent=564314"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/categories?post=564314"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/tags?post=564314"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}