Bitcoin Forum

FedNow
Frequently Asked Questions
https://www.federalreserve.gov/paymentsystems/fednow_faq.htm


https://twitter.com/federalreserve/status/1646153739131027464/
"FedFAQ: Is FedNow replacing cash? Is it a central bank digital currency?
No. FedNow is not related to a digital currency. FedNow is a payments service the Federal Reserve is making available for banks and credit unions to transfer funds.
https://federalreserve.gov/faqs/is-fednow-replacing-cash-is-it-a-central-bank-digital-currency.htm

The FedNow Service is neither a form of currency nor a step toward eliminating any form of payment, including cash. The FedNow Service is an instant payments service provided by the Federal Reserve, launching in July 2023.

FedNow will be available to depository institutions, such as banks and credit unions, in the United States and will enable individuals and businesses to send instant payments through their depository institution accounts.

Instant payments allow individuals and businesses to send and receive payments within seconds at any time of the day, on any day of the year, so that the receiver of a payment can use the funds almost instantly.
Federal Reserve

Testifying before the House Financial Services Committee in March, Powell said a central bank digital currency is “something we would certainly need congressional approval for.” "

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Banks are so bad that the world appears Universal Monetary Unit from Digital Currency Monetary Authority and FedNow?

According to the Twitter link that you give https://twitter.com/federalreserve/status/1646153739131027464/ It seems the Fed denies its cryptocurrencies nor Central Bank Digital Currencies. and also according to their website the FED still "The Federal Reserve Board has issued a discussion paper that examines the pros and cons of a potential U.S. CBDC. As part of this process, we sought public feedback on a range of topics related to CBDC. The Federal Reserve is committed to hearing a wide range of voices on these topics." - https://www.federalreserve.gov/central-bank-digital-currency.htm

But if they using a blockchain technology or if CBDC is there I think the only possible they are using private chain

Everything that is happening now is called in Russian "urination in the ears". I heard the opinion of a very rich trader from the USA, and he also says that at every meetup, meeting, many projects are discussed, but no one knows how it will work further. Therefore, he advises preparing for the worst case scenario.

The FedNow Service is an instant payment service provided by the Federal Reserve, enabling individuals and businesses to send and receive payments within seconds. It's not a form of currency nor a step toward eliminating any payment form, including cash.

Of course, this is not a digital currency, but a fast payment service. In Russia, such a service has been operating for a long time and unites many banks. I can send a transfer anywhere in Russia in a few seconds from the bank application on my phone. Is there such a system in America and how long does it take for your partner to receive the payment?
Perhaps this is a fast payment service, and perhaps CBDC will then work on this platform. The noose on the neck should be tightened imperceptibly.

I don't see any special feature of this new product by the US Federal Reserve apart from the speed of transactions. This is clear proof that the banking system is not giving customers the needed service, hence the Central bank wants to cover these vacuums. I think the American banking industry is going through a lot of problems that they want to showcase this service to divert the attention of the public from the main issues. This is because this fast service is also offered by commercial banks in my country and their transactions sometimes ate reliable. But the Fed didn't guarantee that this service will never experience any service downtime. Let's see how it goes.

Isn't the central bank responsible for the interaction between banks? There is a processing center that is responsible for processing transactions. In Russia, there is a system of fast payments, to which existing banks are connected, and no new solutions are needed. Each participant in the system has only 1 identifier, this is a phone number. Therefore, transactions are confirmed after a few seconds. There is no need to invent anything new, you need to add a new option to the processing centers.

Already the instant transaction available on many countries and upto certain limits so the delay will be there for big transactions which may take few hours like when you transact a million dollar it will take upto 30 mins to 3 hours so they aren't inventing anything new just invented a fancy name and try to use it as a barrier agains the decentralised monetary system. Anyway it won't be an alternative to decentralised money but can pause the adoption for a while and that's what Fed even looking too.

About the title FED will never going to be on the side of crypto I mean decentralised ones like Bitcoin because it's their direct threat to their future so they will be doing all the things to suppress the growth as early as possible.

Frankly, I didn't understand what the goal of the "Fednow Service" invented? What is the different new thing you offer?

Even in the third world countries (in my country, for example), there are services like these through telecommunications companies that can make these payments with ease within seconds.

Something really strange, but the US government certainly has other goals behind the launch of this service !!

National fast payment systems are fast, but they have limits on the amount of the payment and they have set limits. International payment systems cannot boast of such speed. If a similar FED system were launched in Russia, then I could explain.
A digital ruble should soon appear in Russia, but the function of processing centers will be performed by existing banks. Therefore, it is difficult for me to compare the FED with the digital ruble, and say that these are similar systems and the same processes are taking place in all countries.

https://cointelegraph.com/news/federal-reserve-s-fednow-will-integrate-with-metal-blockchain
"The Federal Reserve’s forthcoming instant payment service FedNow will be connected to Metal Blockchain, according to a May 11 announcement from the Metal Blockchain team. The announcement said that the integration will allow Metal users to instantly convert funds to stablecoin and back again using FedNow’s “send/receive” function.
FedNow is an instant payment system developed by the United States Federal Reserve. It allows for round-the-clock, near-instant payments between banks. Currently, U.S. residents can only make instant payments domestically through third-party apps such as PayPal and Venmo, or crypto wallets. The Federal Reserve has stated that the new service will launch in July.
Metal Blockchain is a crypto network developed by Metallicus, based on a fork of Avalanche's code. It was created to offer compliance-friendly options for decentralized finance (DeFi) developers. In the May 11 announcement, Metal developers claimed that the network is “built on the foundation of BSA [Bank Secrecy Act] Compliance,” implying that it has identity verification and Anti-Money Laundering features built in."

https://www.federalreserve.gov/newsevents/pressreleases/other20230720a.htm
"The Federal Reserve on Thursday announced that its new system for instant payments, the FedNow® Service, is now live. Banks and credit unions of all sizes can sign up and use this tool to instantly transfer money for their customers, any time of the day, on any day of the year.

"The Federal Reserve built the FedNow Service to help make everyday payments over the coming years faster and more convenient," said Federal Reserve Chair Jerome H. Powell. "Over time, as more banks choose to use this new tool, the benefits to individuals and businesses will include enabling a person to immediately receive a paycheck, or a company to instantly access funds when an invoice is paid."

To start, 35 early-adopting banks and credit unions, as well as the U.S. Department of the Treasury's Bureau of the Fiscal Service, are ready with instant payments capabilities via the FedNow Service. In addition, 16 service providers are ready to support payment processing for banks and credit unions."

I am surprised, after the launch of the digital currency, why does the Federal Reserve need commercial or peripheral banks? The Federal Reserve can directly access customers without the need for an intermediary, which is the basis for digital currencies that are based on peer-to-peer.
If countries issue digital currencies, it will be the beginning of the end for privacy.

In Russia, I ask the same question. The digital ruble should already start working in August in some renions, but banks will act as service and payment operators. There are many issues of lobbying so that banks do not lose profits. FedNow also does not have the ability to provide technical support to users and solve problems, and they need bank offices and their employees to do this.

https://cryptoslate.com/hbar-surges-15-as-fednow-support-hedera-based-dropp-for-real-time-transactions/
"The Federal Reserve FedNow payment system has enabled support for Dropp, a micropayment platform based on Hedera (HBAR) Network, according to available information on its website.

What is Dropp?
Dropp is a payments platform based on Hedera that allows merchants to get paid in digital assets, including HBAR, USD Coin (USDC), and fiat USD. Merchants can earn and keep their income on the platform, while consumers only pay per use without having to share their information."