According to Cointelegraph on August 6th, the Federal Reserve Board plans to launch a real-time payment and settlement service to promote the construction of payment infrastructure in the United States.
Image source: pixabay
- Bank of China releases 2020 Economic and Financial Outlook Report: Blockchain empowers the banking industry in all directions
- Blockchain technology and the construction of open banks: 3 characteristics to meet 3 challenges, how to build an open banking ecosystem?
- Xinhua Finance Review: JP Morgan Chase Leads Traditional Banking Blockchain Innovation
- Silicon Valley vs Wall Street: Libra is just the beginning of a long bloody battle
- Venezuelan President orders Venezuela Bank to open oil currency trading counter
- Philippine United Bank launched a stable currency linked to the peso to empower its blockchain-based clearing system i2i
A press release issued on August 5th stated that the Board of Governors of the Federal Reserve System has asked the Federal Reserve Bank to develop a new interbank real-time settlement service to enable interbank banks. Payment is faster. The payment system is called FedNow and is said to be launched in 2023 or 2024.
With the launch of FedNow, the Fed's goal is to modernize the US payment system and provide real-time payment services that can be transferred 24/7. According to reports, this service will be open to businesses and the public.
The Fed believes that such a system will give consumers more flexibility to manage their funds and pay at the best time. Currently, it is asking the public to comment on the potential design and functionality of the new service. Commenting on this issue, US Federal Reserve Board member Lael Brainard said:
“Everyone should have the right to pay and receive payments quickly and securely, and every bank should have the same opportunity to provide this service to its community. FedNow will allow banks of all sizes across the country to provide real-time payments to customers. service."
Encrypted community response
Some members of the cryptocurrency field are a bit surprised by the Fed’s plan to launch its own real-time payment system. Anthony Pomobinno, co-founder of crypto asset management company Morgan Creek Digital Assets, wrote on Twitter:
"Bitcoin has achieved this."
Others’ responses are more euphemistic. Gabor Gurbacs, head of digital asset strategy at MV Index Solutions, a subsidiary of investment management firm VanEck, wrote on Twitter:
“The Fed is able to take a forward-looking and sensible stance on digital assets and payment innovation, which is a good thing. But I suggest it consider the advantages of Bitcoin, a robust currency that is powerful, reliable and has minimal trust. Base layer."
Other cryptocurrency-related companies also plan to contribute to the project. In June of this year, Ripple Labs was selected as a member of the Steering Committee of the Fed's Faster Payments Working Group. The goal of the program is to "establish a fast, secure and extensive payment network in the United States."
The Fed cut interest rates last week, and some experts said that this move may partially boost Bitcoin's recent price increases. Tom Lee, co-founder of Fundstrat Global Advisors, said:
“Bitcoin is increasingly becoming a macro hedging tool for investors to guard against various possibilities. Interest rate cuts have increased liquidity. Liquidity is driving capital into all of these risk-hedged assets, which is a positive for Bitcoin.”