NEW! FedNow Payment System

Fed’s instant payment service ‘FedNow’ set to launch by July 2023

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Fed’s instant payment service ‘FedNow’ set to launch by July 2023

The Federal Reserve is on track to deliver an instant payment service called FedNow between May and July 2023, the central bank’s clearest timeline yet for a new system enabling settlement of U.S. payments in seconds.

The FedNow service also potentially negates the need for the creation of a central bank digital currency, or CBDC.

“The FedNow Service will transform the way everyday payments are made throughout the economy, bringing substantial gains to households and businesses through the ability to send instant payments at any time on any day, and the funds being immediately available to recipients to make other payments or manage cash flow efficiently,” Fed Vice Chair, Lael Brainard, said in a speech Monday.

The Fed has been testing the system with a limited number of banks and institutions, but Brainard called on financial institutions, service providers, and software companies to adopt the FedNow Service now to ensure the system will work smoothly come next spring.

Click to read full Article about FedNow.

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