FedNow

2022: US Federal Reserve creates analogue of Russian SBP

On Aug. 29, 2022, Vice Chairman Federal Reserve System Lael Brainard called out the timing of the launch of FedNow, the platform the Fed is working on to ensure payments are calculated almost instantaneously in. USA It's about technology like in. Fast Payment System (FPS) Russia

FedNow is a platform that the Fed will provide to banks to create payment functions in existing or new products. FedNow-backed products will have almost instant 24/7 settlement.

US Federal Reserve creates an analogue of the Russian Fast Payment System

The payment system is a critical part of America's infrastructure that affects everyone, "Brainard said. Americans rely on the payment system every day to shop, pay bills and get paid without thinking about the complex infrastructure that runs under the hood. American enterprises want and deserve payment transactions that work smoothly, reliably and efficiently.

Immediate availability of funds can be especially important for households managing their finances from paycheck to paycheck, says Brainard. Having the ability to manage money in real time can help households avoid costly late fees.

FedNow is not a blockchain-based product and is not a central bank digital currency (CBDC). It remains largely dependent on third parties, in particular for transactions.

But - if it is in demand - it will make existing money more competitive against cryptocurrencies by reducing the cost of transactions and ensuring low-risk settlements around the clock, Brainard emphasizes.

FedNow is due to launch in 2023 between May and July. This is the most specific time frame for the Fed to launch the service.^[1]

Notes

Шаблон:Remarks