Yesterday, August 6th, during a webinar, Federal Reserve payment mavens spoke about the latest developments in FedNow. Launched in 2013 to collaboratively explore the speed, safety and efficiency of the payments system in the United States, FedNow has taken 7 years to crystallize into a form approved by the board of governors after digesting public comments. The accompanying press release will be part of the Federal Register in a month. Read the fifty page press release to get a very detailed look at the current state of FedNow and plans for its implementation.
The Federal Bank of the United States, believe it or not, has a decentralized governance structure, with 12 Reserve Banks in different parts of the country, overseen by a board of governors that reports to the congress. Although the Fed does not have complete and unbridled (plenary) authority over the regulation and supervision of the payments system; by working on an operational core of the national payments structure the Fed aims at boosting fundamental improvements in the nation’s payment system. Of course, an efficient, innovative and instant payment system is crucial in the Feds broader mission of providing the public with a safe, effective and modern financial system.If FedNow were operational, would stimulus checks have reached its recipients faster? Paper checks and associated costs may become a thing of the past.
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