Federal Reserve launches FedNow instant payment service

[larry_vw_1955]

https://www.nbcnews.com/business/consumer/federal-reserve-launches-fednow-instant-payment-service-bypass-venmo-p-rcna95380

The U.S. Federal Reserve has launched a long-awaited service which will aim to modernize the country’s payment system by eventually allowing everyday Americans to send and receive funds in seconds, 24 hours a day, seven days a week, the central bank announced on Thursday.

Seems like this could be a good thing for people living in the USA. If I could send money using this thing internationally to anyone why would I need bitcoin?

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[BlackBoss_]

FedNow will be supported by the USA CBDC.

It makes sense to see their governmental authorities have been trying to do more aggressive legislation bills and regulatory activities against cryptocurrency. They do all such to support their CBDC in future but I still see some positive supports from Congress members, Senators latest months.

I believe that the launch of CBDC and FedNow will not be completely negative for their citizens. I look at it with this view, those things will expose many people to digital transfers and after they are familiar with it, I hope some of them will look for alternatives, better than CBDC and FedNow. It will be times for them to look at Bitcoin and cryptocurrency as better alternatives for CBDC.

[buwaytress]

You answered yur own question without really realising. It's a national payment service, for USD. North America catching up to LatAm, Africa and Asia in terms of fintech.

But all of these regions who've been using SMS or QR code payments for over a decade now still find use for Bitcoin. Think bigger: sanctioned people and governments, individuals, businesses and states that the US and its allies have excluded from money/economy.

Iranians have this instant payment system. But they still have a need for Bitcoin (US dollar sanctions). Argentinians have similar but still need Bitcoin (hyperinflation).

Come on, OP, you can ask better questions.

[Agbe]

Bitcoin has force countries to use cashless transaction which brought about the use of CBDC. But one thing I know is, the aims of these centralized cashless transaction platforms from the State Governments are different from bitcoin, they are not for the benefits of the people but for the State while bitcoin is for the people and not for the State but if the state decide to participate in bitcoin they are free. The launched of FedNow can not over shadow the uses of bitcoin in USA because the aims and goals are not the same. People will still use bitcoin there. I think Fiat Banks also use instant payment methods. If care is not taken, Fiat Banks payment is even faster than bitcoin, because I have seen and experienced instant transfer and received alert instantly from Fiat Banks. And op what you are saying is only for Nation (USA) and not to another country but remember, bitcoin transaction is to cross boarders.

[rikybrosh]

it can't safe us from inflation. if government keep printing money as they want, then value of our money will keep decrease. even I am not sure that our fiat money is backed by gold, if its backed by gold why gold price keep rise?. for me I still need bitcoin whether as currency or investment. fast transaction is only one of many bitcoin advantages. I just feel that Bitcoin is safe me from the government arbitrary action in economy. I am okay to use fiat money because I still need it for my daily life, but have some amount of bitcoin will make my life happier.

[pooya87]

If I could send money using this thing internationally to anyone why would I need bitcoin?

Do you seriously not understand the difference between centralized fiat (and its alternatives) and decentralized money that is bitcoin after 2 years of being in this forum? Or are you just joking around with this?

[Flexystar]

I will say it’s just good for the Americans. Their government is welcoming new way of transacting within their country so yeah that’s good for them. I don’t think it has got any negative impact on the Bitcoin usage or crypto as whole. It’s just a payment system for their people, that is all. It will be limited to their own people, hardly think it will get out of USA. If it does then there is no difference between so called traditional banking and fednow system. India also has UPI for that matter, but it doesn’t mean people started using UPI and stopped Bitcoin. Both the ends are just opposite. I don’t know why it’s being compared with Bitcoin. The Bitcoin properties are unmatched by all means.

[avikz]

https://www.nbcnews.com/business/consumer/federal-reserve-launches-fednow-instant-payment-service-bypass-venmo-p-rcna95380

The U.S. Federal Reserve has launched a long-awaited service which will aim to modernize the country’s payment system by eventually allowing everyday Americans to send and receive funds in seconds, 24 hours a day, seven days a week, the central bank announced on Thursday.

Seems like this could be a good thing for people living in the USA. If I could send money using this thing internationally to anyone why would I need bitcoin?

Yes! It is very similar to the system used in India called UPI. The only difference here is that, US will use E-doller to make this system work. From what I understand, it will bring in revolution in the digital payments in US which wouldn't need intervention from your bank. Payments will become cheaper and faster. But along with all the facilities, Americans will loose another layer of financial privacy.

Bitcoin is made for a different reason. It is made to keep your financial privacy intact. So the introduction of a faster payment system, has no impact on bitcoin.

[Faisal2202]

The U.S. Federal Reserve has launched a long-awaited service which will aim to modernize the country’s payment system by eventually allowing everyday Americans to send and receive funds in seconds, 24 hours a day, seven days a week, the central bank announced on Thursday.

Seems like this could be a good thing for people living in the USA. If I could send money using this thing internationally to anyone why would I need bitcoin?

You shared a good piece of information but it's little bit rusty (old). But still, this topic need no discussion but dear OP, your query do need some answers. Because this service is only available in USA not in other countries so this is the first reason for us to use BTC. Second reason is centralization and decentralization.

There are plenty of topics made on how Banks and Cryptocurrency are two different financial pathways. Even recently, i wrote an article in which i tried to tell the potential of BTC over Banking sector. --> To Understand the Potential of BTC, What we Must Know?. Well, other than this there are plenty of differences in which BTC away the competition with Banks.

But still if you think Fednow service will not be manipulated by government and will be dealt as decentralized (which will not). Then you must check the maximum limit they are offering according to the article link you aforementioned.

At the outset, FedNow will have a maximum payment limit of $500,000, but banks can choose to lower that cap if need be.

And i hope you better now there is not limit in BTC transactions.

[ololajulo]

I sense your unease with this information, and it's essential to remember that we are dealing with government-related matters. Unlike Bitcoin, the primary purpose of this particular currency is not for transactions. Instead, if you choose to transact with it, be aware that your activities will be closely monitored, even across international borders. Additionally, the currency being traded lacks the ability to experience significant price fluctuations, and there are no returns on holding it.

[larry_vw_1955]

Come on, OP, you can ask better questions.

There is no question to asking. Just some observations.  i already understand FedNow is not for international transfers. But if it was then I really wouldn't see the use of bitcoin unless someone is just an investor like gold.

Do you seriously not understand the difference between centralized fiat (and its alternatives) and decentralized money that is bitcoin after 2 years of being in this forum? Or are you just joking around with this?

So I guess that means you get paid in bitcoin while most people get paid in fiat. They don't care about how much bitcoin their paycheck is worth they care about what it can buy them at the grocery store or somewhere else.

Having bitcoin is nice but let's be honest, it's not convenient to use. You can't even use it on ebay and why would you want to? I would use a credit card that has some type of cash back reward, not something that is going to COST me to use...


The system lets Americans pay for groceries instantly, businesses pay their suppliers, or people pay each other. It will be available 24 hours a day, every day of the year, with full access to funds immediately.
https://finance.yahoo.com/news/fed-launches-new-payments-system-that-lets-you-send-money-in-seconds-140305052.html

As far as I'm concerned, this FedNow might be just another reason for people to not have to use bitcoin. For them to not use it. It's up to them though. Zelle was pretty convenient and fast but they're a company. No one wants to trust a single company...but if you can't trust your government then you're in a problem!

You shared a good piece of information but it's little bit rusty (old). But still, this topic need no discussion but dear OP, your query do need some answers. Because this service is only available in USA not in other countries so this is the first reason for us to use BTC. Second reason is centralization and decentralization.

How does one come to the conclusion that they first had fiat which was centralized and can't be trusted but all the sudden they turned it into something called bitcoin that is not centralized and can be trusted? Did they suddenly break the bonds of the government just by sending their US dollars to Coinbase and clicking on the "buy bitcoin" button? I doubt it. If anything, they're going to be scrutinized and monitored even more than someone that just keeps their money in a good old bank account. How is something decentralized when you have to report every single transaction you did where you sold some bitcoin? It's not.

If bitcoin wasn't encumbered so heavily by the IRS I might have a better feeling about it. 

[Charles-Tim]

Seems like this could be a good thing for people living in the USA. If I could send money using this thing internationally to anyone why would I need bitcoin?

There are people that hold bitcoin, it is not used for only payment. There are people that use bitcoin for trading too. There are people that will use bitcoin for payment, which can even be cheap, depending on the mempool congestion. Some people sending using lightning network with zero fee or very low fee and the payment is very fast.

Having bitcoin is nice but let's be honest, it's not convenient to use. You can't even use it on ebay and why would you want to? I would use a credit card that has some type of cash back reward, not something that is going to COST me to use...

Not convenient to use but miner are confirming thousands of bitcoin transactions in each block mined. Also bitcoin lightning payment is increasing. You should not be have self-centered opinion about this. There has been many platforms that I have seen bitcoin payment, at least I have even used it directly before for payment.

[Latviand]

I'm basing my opinion on the OP and the article, this sounds like a good thing especially for fiat because now you don't need a bank open to deposit or withdraw your money. Maybe if there's a way where they can demonstrate how it works and how to use it, so it becomes easily adopted by their people. What worries me though is that there's no transaction fee which means that they haven't found a way to make sure that banks continue using the system, I hope that the transaction fee system would come from the Federal Reserve and not be shouldered by banks which is going to make it complicated since different banks will definitely do different systems.

[yudi09]

Only for American citizens, if the FedNow service is considered it can be a convenience.

the Fed stated that FedNow Service is similar to other payment services, such as Fedwire and FedACH, which work within the boundaries of the fiat ecosystem. It said:

The Federal Reserve further confirmed that it has not yet decided on issuing the highly anticipated CBDC and “would only proceed with the issuance of a CBDC with an authorizing law.”

Seems like this could be a good thing for people living in the USA. If I could send money using this thing internationally to anyone why would I need bitcoin?

Come on bro. You have to learn again to distinguish between Bitcoin and fiat.
Many great people in the world recognize the ease of transacting with Bitcoin.
Bitcoin is not the same as fiat currency. Learn how fiat currency systems and functions, don't just use it.

[sesterceshop]

The FedNow service may be a good thing for people living in the USA, but it is not a substitute or a threat to Bitcoin. Bitcoin is more than just a payment system; it is a revolution in money, society, and technology, which FedNow is most definitely not.

[Dictator69]

I think the rank on this platform doesn't mean it will represent the level of knowledge one has. Because me as a newbie think that i better understand why we needed BTC and why we don't need fednow service. One of the many reasons are:

• BTC is decentralized and not managed by some single entity or governments thus cannot be stopped by them while FedNow can be stopped by government.
• BTC provides you full ownership without showing your personal identity while on FedNow you have to fill forums and have to integrate with Banks
• Banks always manipulate your money whether you use their service FedNow to send from one place to another, the transaction could be used too, For bad purposes. But BTC transactions cannot be manipulated.
• You have a limit on sending and receiving money through FedNow while if you are going to send or receive money on BTC core wallet or any SPV wallet then you have no limits.

I think these facts are enough to remind you why we need BTC and why we don't need some instant payment service.

[Outhue]

Only for American citizens, if the FedNow service is considered it can be a convenience.

the Fed stated that FedNow Service is similar to other payment services, such as Fedwire and FedACH, which work within the boundaries of the fiat ecosystem. It said:

The Federal Reserve further confirmed that it has not yet decided on issuing the highly anticipated CBDC and “would only proceed with the issuance of a CBDC with an authorizing law.”

Seems like this could be a good thing for people living in the USA. If I could send money using this thing internationally to anyone why would I need bitcoin?

Come on bro. You have to learn again to distinguish between Bitcoin and fiat.
Many great people in the world recognize the ease of transacting with Bitcoin.
Bitcoin is not the same as fiat currency. Learn how fiat currency systems and functions, don't just use it.

FedNow service is not related to a digital currency? Noted, but when people start using FedNow service and CBDC join the chain this will open the eye of many into Bitcoin, something stats obviously better than FedNow and CBDC combined.

FedNow will be eye-opening to decentralization, it looks like it's not going to favor crypto right now but it will eventually because some people who keep their distance from everything apart from Banks will start getting curious.

[LoyceV]

The U.S. Federal Reserve has launched a long-awaited service which will aim to modernize the country’s payment system by eventually allowing everyday Americans to send and receive funds in seconds, 24 hours a day, seven days a week, the central bank announced on Thursday.

It took them long enough. Europeans have been doing that for many, many years!

[Doan9269]

Seems like this could be a good thing for people living in the USA. If I could send money using this thing internationally to anyone why would I need bitcoin?

I hope it's never too late for you to realize their plan to redivert your trust and interest on a decentralized digital network (bitcoin) to ensure they get you convinced they can offer you better and seemless service through their traditional fiat system through the introduction of their own digital version of central bank digital currency, anything aside bitcoin is not worth going for, CBDC is not cryptocurrency and the people were after cryptocurrency and not CBDC, anything that has to do with government regulations and control over your financial assets should be kicked against, don't wait till it becomes too late for you to realize they have censorship over anything coming under their authority, except you don't need freedom, bitcoin is the best currency and asset s at today and beyond.

[pakhitheboss]

We have the same instant money transfer in our country known as UPI. It has been in existence for a few years now and has been a big success. The only issue is that we still cannot use it for international money trasfer. The reason being other countries need to upgrade thier banking technology. Do you think other countries would be ready to do it? Obviously not and this why Bitcoin cannot be ignored. It will always remain important untill the government of every country agrees to one currency and payment network.