In its attempt to improve the digital payments infrastructure in the United States, the country’s Federal Reserve Board has announced its plans to launch its own real-time payment and settlement service. The announcement was made through a recent press release.
The board of Governors of the Federal Reserve System, according to the press release, had asked the Reserve Banks to develop an inter-bank real-time settlement service to allow for faster payments within the country. The payment system to be launched will be allegedly known as FedNow and will be available for the use of the public by 2023 to 2024.
The Need for a Real-Time Payment Service
According to the press release announcing the news, the Federal Reserve wants to modernize the payments system in the country. The new platform will allow for faster and easy payments. The platform which will be accessible to both individuals and businesses will be working round the clock on all days including weekends.
This will enable people and organizations to carry out time-sensitive transactions over a trusted digital platform, and better manage their money in a flexible way.
This will also help banks of different sizes to allow their members to access real-time payments services. This, therefore, will become a way of ensuring equal financial access for all members of different communities.
Crypto Community Reacts
The members of the crypto community have reacted in varied ways to this development. While some have clearly pointed out the similarity of the aims of this project with that of Bitcoin and other cryptocurrencies, others have stated the need for the government to coordinate with the crypto community. In the meantime, Ripple Labs, an unconventional crypto-based organization, has been elected to the Federal Reserve’s Faster Payments Task Force Steering Committee.