Federal Reserve Officially Launches FedNow Payment Service
Summary: The US Federal Reserve has launched the FedNow payment service, aiming to modernize the American payment system and address issues like high transaction prices and long settlement times. FedNow has been praised by the business community for its advantages over rivals like PayPal and Venmo.
The Federal Reserve of the United States has finally released its FedNow payment service, which has been greatly anticipated and which aims to usher in a new era of transferring monetary value between parties.
Modernizing U.S Payment System
The Fed has been advertising its new FedNow service as a way for Americans to make and receive payments immediately, around the clock. The FedNow service has modernized the American payment system, demonstrating the central bank’s adaptability to the payment revolution by offering a similarly strong service to all Americans.
High transaction prices and lengthy settlement times are only two of the numerous problems plaguing the country’s current payment system.
Not the First Nation
The Federal Reserve has been planning the rollout of this service as early as 2019, when it saw that emerging payment technologies, such as blockchain, were rapidly becoming the norm. Similar services like FedNow have been floated in the past by other nations including the UK, Brazil, and India.
The Federal Reserve has approved 41 banks and 15 service providers to provide the new FedNow service, which is just entering the market. The Federal Reserve has plans to accept even more service providers in the near future, notwithstanding the current sizeable pool.
FedNow has been praised by many in the business community, who have pointed out the service’s distinct advantages over rivals like PayPal and Venmo.
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Depending on how many people in the United States use the new service, the introduction of the FedNow payment service might have an effect on the crypto ecosystem. While politicians may be dismissive of crypto as legal cash for the time being, there is no denying the cryptocurrency’s growing significance in the financial sector.