Federal Reserve launches FedNow instant payment service

[o48o]

Weird how much governments are dragging so far behind on payment systems that this only happens now. Paypal has existed 24 or so years. Mobilepay in Finland has existed 10 years and banks still keep fighting each other and it might take more than a day to move money between banks in here. Unless you do it with mobilepay which is instant. It's like big players don't even care.

This is definitely a step up from them, at least in US. I still find it weird how this wasn't happening 10 years ago.

[Abiky]

The difference that makes Bitcoin and this different from each other is decentralization. Everything that involves the government is totally centralized and they do it because they want control over everyone. As long as you are using services that are provided by the government, they are in control of your personal life. Bitcoin put all of that control shit in the trash. And that's the beauty of Bitcoin. No one will have control over your things. You are the owner of your stuff.

Even if we talk this and that about Bitcoin and govt. services, it will always depend on personal preferences. Those who know about Bitcoin and what it could do, also who are concerned about their privacy. They will use Bitcoin for sure. I have never heard of anyone who knows in depth about Bitcoin not using it. Those who are ignorant or don't know about Bitcoin and have no concern about their privacy will have no problem using government-issued services. This is all about knowing. If you have enough knowledge about bitcoin, you won't ask this question in the first place.

People truly don't understand Bitcoin's value proposition. It's not about making money with it, but rather using it as an alternative to existing Fiat currencies. By using it, you're getting freedom and privacy in return. In some ways, you'll be "liberated" from the evil clutches of central banks and governments alike. After all, these entities can't freeze or touch your Bitcoin.

FedNow is just a centralized ledger meant to benefit banks more than individuals using it. I believe it's the incarnation of the US Dollar in digital form (CBDC). This won't affect Bitcoin whatsoever. That is if Bitcoin remains decentralized for long. The day Bitcoin becomes centralized (I hope it never happens) will be the day when governments will win. Who knows if FedNow will make so-called stablecoins a thing of the past? Just my thoughts

[larry_vw_1955]

People truly don't understand Bitcoin's value proposition. It's not about making money with it, but rather using it as an alternative to existing Fiat currencies. By using it, you're getting freedom and privacy in return. In some ways, you'll be "liberated" from the evil clutches of central banks and governments alike. After all, these entities can't freeze or touch your Bitcoin.

At the end of the day, convenience is what people want and if you make it easy for them to use then that's what most people will use. I'm not sure exactly how long it takes until FedNow is at every bank but when that day comes, I don't see anyone thinking that bitcoin is a solution for sending money to someone else within the USA. They'll be using FedNow for everything. And they'll wonder why bitcoin would be useful since it requires them to first send their money to somewhere like coinbase which takes how long and then they have to trust coinbase to let them buy bitcoin and not freeze their account and coinbase doesn't even have a phone number they can call unlike their bank? I don't think so...

[dothebeats]

People truly don't understand Bitcoin's value proposition. It's not about making money with it, but rather using it as an alternative to existing Fiat currencies. By using it, you're getting freedom and privacy in return. In some ways, you'll be "liberated" from the evil clutches of central banks and governments alike. After all, these entities can't freeze or touch your Bitcoin.

At the end of the day, convenience is what people want and if you make it easy for them to use then that's what most people will use. I'm not sure exactly how long it takes until FedNow is at every bank but when that day comes, I don't see anyone thinking that bitcoin is a solution for sending money to someone else within the USA. They'll be using FedNow for everything. And they'll wonder why bitcoin would be useful since it requires them to first send their money to somewhere like coinbase which takes how long and then they have to trust coinbase to let them buy bitcoin and not freeze their account and coinbase doesn't even have a phone number they can call unlike their bank? I don't think so...

You have a good point here. People will always go for convenience. No matter how better bitcoin is, if there is a different system that will be easier for them to use and is available everywhere then people will always go for that. Moreover, people will go for the one they feel secure with. 

[Kakmakr]

Well, even if this is centralized and government controlled... I still think misinformed people will follow like sheep and use this service. Most people trust everything that governments dish up for them.... just look at the chaos that Covid Jabs caused and how many people bend the knee. 

This will start in the US and it will spread like a digital virus and before we know it, people will have something implanted in their body to access it and the government will have full control over how you spend your money. (If they do not want you to donate to a truck riot cause.. then they will block all payments to that platform from that chip)

[Jatiluhung]

I don't have enough information about FedNow but I want to make sure those who know about this. Is FedNow adopting CBDC or not?. I think this system is a bit different from CBDC. Or maybe I'm wrong.

But from the link the OP attached, I was quite surprised because several countries already had a system like FedNow a few years ago. Examples include England, India, Brazil and several others. Doesn't this mean that the Fed is a little late in the competition. Or maybe the Fed is being more careful in developing this system. because from the link attached by the OP it is written that this system has been in development since 2019. But whatever it is I think this is a good step in the world of a country's finances. because the current transaction speed should be one of the main points to be resolved.

[gunhell16]

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.

Indeed, and it looks like that is really the main purpose of what they are doing from the very beginning. I even heard something and I don't know if it's just a rumor, but it seems to be true that the U.S. is planning to make Bitcoin a back-up of the Dollar.

Because after all, the U.S. dollar doesn't have any back-up even if it doesn't have gold, so Bitcoin is probably the only key left for them to have a back-up to the dollar. And I don't see anything wrong if they actually do it.

[Fiatless]

At the end of the day, convenience is what people want and if you make it easy for them to use then that's what most people will use. I'm not sure exactly how long it takes until FedNow is at every bank but when that day comes, I don't see anyone thinking that bitcoin is a solution for sending money to someone else within the USA. They'll be using FedNow for everything. And they'll wonder why bitcoin would be useful since it requires them to first send their money to somewhere like coinbase which takes how long and then they have to trust coinbase to let them buy bitcoin and not freeze their account and coinbase doesn't even have a phone number they can call unlike their bank? I don't think so...

If you are considering convenience, bitcoin will always be the best option. You don't need to have an account in any bank and go through any verification process. All you just need is to download or buy a wallet and hold your coin. It will take a simple process of inputting an address or scanning a code and clicking a button to send or receive money. Who said you can only use bitcoin through centralized exchanges?  They are the least to consider for bitcoin transactions because you can always use P2P. Using Bitcoin is more convenient in terms of speed, simplicity, privacy, and when cost of transactions (Lightning Network).

[goaldigger]

Weird how much governments are dragging so far behind on payment systems that this only happens now. Paypal has existed 24 or so years. Mobilepay in Finland has existed 10 years and banks still keep fighting each other and it might take more than a day to move money between banks in here. Unless you do it with mobilepay which is instant. It's like big players don't even care.

This is definitely a step up from them, at least in US. I still find it weird how this wasn't happening 10 years ago.

That's a big question to me as well since I thought the US is very advanced too when it comes to technology but I think I'm wrong when it comes to their financial system. Well, this is one of the reason why they are restricting cryptocurrency since they have the plan to create their own. Let's see if FedNow will support US CBDC because if they do, for sure it will be a centralized one that will force their citizen to adopt, and hopefully they will remain neutral with cryptocurrency.

[larry_vw_1955]

If you are considering convenience, bitcoin will always be the best option. You don't need to have an account in any bank and go through any verification process.

unless you're performing some type of service for it and getting paid in bitcoin then i don't see how you could not need a bank account to be able to get bitcoin? where does your money come from to buy bitcoin? that's right. from your bank account. you either send that money to somewhere like coinbase or you withdraw it and meet up with somebody and hand your cash over to them and hope they send you bitcoin in return.

most people have jobs that pay them electronically into their bank account via direct deposit here in the USA so not needing a bank account pretty much means you dont need a job. i guess some people might still get paper checks but guess what? they have to go cash it and where are they going to do that? that's right. at their bank. if they don't have a bank then who is going to cash it for them? that's right. nobody wants to cash a check for someone that is not even their customer. so they have to use check cashing services which probably charge fees.  

All you just need is to download or buy a wallet and hold your coin. It will take a simple process of inputting an address or scanning a code and clicking a button to send or receive money.

yeah sure you can install a bazillion btc apps on youir phone but who is going to send you bitcoin and why would they do that? because you gave them fiat? and how are you getting your fiat? and how are you transferring it to them? that's right by using your bank account in some way most likely...

Who said you can only use bitcoin through centralized exchanges?  They are the least to consider for bitcoin transactions because you can always use P2P. Using Bitcoin is more convenient in terms of speed, simplicity, privacy, and when cost of transactions (Lightning Network).

So you don't have a bank account but you keep all your fiat under a mattress. Then you use some of it to convert to bitcoin. Anytime you need to pay a bill, you have to go in person to the business or someone that accepts payments on their behalf and pay the bill in cash. Sounds really inconvenient. most people just pay their bills electronically using autopay even! If you ever end up in a situation where you can't find someone to trade bitcoin for fiat or vice versa then you're really in a pickle...

Well, even if this is centralized and government controlled... I still think misinformed people will follow like sheep and use this service.

Well, just think of the Zelle service and how that thing spread like wildfire and that was a 3rd party company. I think FedNow will kind of put Zelle out of business since it's going to do the same thing at some point, if it does, say goodbye to Zelle. No one will need it anymore. But people used Zelle like crazy. If it was good enough for their bank to be recommending it to them and integrating it into their online banking then it was good to go! You can bet it will be the same thing with FedNow times 100.

Zelle is free though. I'm not sure if transfers with FedNow will be completely free. That might be the only thing that saves Zelle from extinction.

In other words, whatever the banks go with is what the people will use. Since they trust their banks...

[Fiatless]

If you are considering convenience, bitcoin will always be the best option. You don't need to have an account in any bank and go through any verification process.

unless you're performing some type of service for it and getting paid in bitcoin then i don't see how you could not need a bank account to be able to get bitcoin? where does your money come from to buy bitcoin? that's right. from your bank account. you either send that money to somewhere like coinbase or you withdraw it and meet up with somebody and hand your cash over to them and hope they send you bitcoin in return.

most people have jobs that pay them electronically into their bank account via direct deposit here in the USA so not needing a bank account pretty much means you dont need a job. i guess some people might still get paper checks but guess what? they have to go cash it and where are they going to do that? that's right. at their bank. if they don't have a bank then who is going to cash it for them? that's right. nobody wants to cash a check for someone that is not even their customer. so they have to use check cashing services which probably charge fees.  

All you just need is to download or buy a wallet and hold your coin. It will take a simple process of inputting an address or scanning a code and clicking a button to send or receive money.

yeah sure you can install a bazillion btc apps on youir phone but who is going to send you bitcoin and why would they do that? because you gave them fiat? and how are you getting your fiat? and how are you transferring it to them? that's right by using your bank account in some way most likely...

Who said you can only use bitcoin through centralized exchanges?  They are the least to consider for bitcoin transactions because you can always use P2P. Using Bitcoin is more convenient in terms of speed, simplicity, privacy, and when cost of transactions (Lightning Network).

So you don't have a bank account but you keep all your fiat under a mattress. Then you use some of it to convert to bitcoin. Anytime you need to pay a bill, you have to go in person to the business or someone that accepts payments on their behalf and pay the bill in cash. Sounds really inconvenient. most people just pay their bills electronically using autopay even! If you ever end up in a situation where you can't find someone to trade bitcoin for fiat or vice versa then you're really in a pickle...

Your arguments are not baseless because they explain the current condition of the global financial system. According to research, only 4.2% of the population of the world uses cryptocurrencies. The dominant means of payment in the world is fiat and it will remain like that for who knows when. For now, Bitcoin cannot compete with fiat because the global financial system is more fiat oriented and people are forced to use it because they have no other option. Like you rightly pointed out only a few people earn bitcoin, therefore if you have to buy the coin, you need fiat to make payment. I don't think anyone can survive in the world without using fiat for payment.

But my view is that Bitcoin will be more convenient to use if it enjoys the same popularity and support fiat enjoys. Assuming Bitcoin becomes a generally acceptable currency globally and every employee is allowed to choose his medium of payment (fiat or Bitcoin). And Bitcoin is freely used to make payments for goods and services in any firm globally. If all these happen Bitcoin will become a highly competitive alternative. Let government stop all these bans and regulations and everyone will see how popularly bitcoin will become.

[Woodie]

With this new service by the Federal Reserve,  the major difference or defining feature should come in how much fees each transaction will attract , but don't see this getting any cheaper than what cryptocurrencies offer today!!

Btw, just hope this move isn't trying to make crypto irrelevant in the USA and get other countries building such for themselves,  otherwise crypto is here to stay thanks to its pseudonymous and anonymous nature!

[Jatiluhung]

With this new service by the Federal Reserve,  the major difference or defining feature should come in how much fees each transaction will attract , but don't see this getting any cheaper than what cryptocurrencies offer today!!

Btw, just hope this move isn't trying to make crypto irrelevant in the USA and get other countries building such for themselves,  otherwise crypto is here to stay thanks to its pseudonymous and anonymous nature!

This system will probably only make the fiat transfer and payment system faster and nothing more. Because basically the fiat used will still be affected by inflation which will continue to occur from year to year. So the role of crypto will remain strong in the world of digital finance. Because crypto has advantages in this type of investment. Be it as a commodity asset or as a security. So crypto lovers should not be affected by this.

FedNow does not appear to be a CBDC but this system is said by some to be the path to the implementation of a central bank digital currency (CBDC) in the United States.

Sourch: https://id.beincrypto.com/layanan-pembayaran-instan-fednow-mulai-aktif-apakah-jadi-jalan-menuju-cbdc-di-as/

[larry_vw_1955]

Your arguments are not baseless because they explain the current condition of the global financial system.

I appreciate you acknowledging some of the arguments have a legitimacy.

But my view is that Bitcoin will be more convenient to use if it enjoys the same popularity and support fiat enjoys.

Something else needs to happen for that to happen though. Bitcoin has been here for over 10 years now.

Assuming Bitcoin becomes a generally acceptable currency globally and every employee is allowed to choose his medium of payment (fiat or Bitcoin).

that's a big assumption. bitcoin has been around over 10 years now and i don't think very many employers even care about bitcoin. they don't take bitcoin as payment in their business so what's the chances they would ever offer employees to get paid in it? not very much right? if they don't have bitcoin coming in from sales they're not going to want to have to convert fiat into bitcoin using coinbase just so they can pay someone with it. only a crypto company is somewhere you would see that and they would be hypocritical if they didn't offer it...

And Bitcoin is freely used to make payments for goods and services in any firm globally. If all these happen Bitcoin will become a highly competitive alternative. Let government stop all these bans and regulations and everyone will see how popularly bitcoin will become.

i wouldn't trust any employer that just sent payroll off to somewhere like coinbase. because i would be worried that coinbase might sometimes freeze the account causing delays in getting paid...so they would need a better setup than just that if they really wanted to do payroll using bitcoin. but i'm not sure any exist.

[dothebeats]

But my view is that Bitcoin will be more convenient to use if it enjoys the same popularity and support fiat enjoys.

Something else needs to happen for that to happen though. Bitcoin has been here for over 10 years now.

I agree. A big shift in the economy and technology will need to happen first before bitcoin reaches that point of acceptance, popularity and support. It is not as easy as people think it is. Not everyone have the means and immediate acceptance to a big change that bitcoin will surely bring once that happens. Even now, there is still a big number of people that do not like using e-payments.

[savetheFORUM]

Enlighten me, please. What similar system have we been using?

SEPA. Before that, most national transactions between different banks were already instant, and before that, at least the transactions within the same bank were instant. Nationally, we've had iDEAL since 2005, which is mainly used for instant payments to webshops. It has much lower costs than credit cards.
I'm surprised US banks couldn't do this on their own, now the FED has their name on it. Now that I think about it: CBDCs have the same problems: Central Banks promoting themselves by putting their name on it, just so the average person doesn't realize they don't share their interests.

Never heard of them before but that's actually something good. I have always imagined that we had something like this before in most nations, we had "swift" in where I live, so sending or receiving money was already quite quick and never needed any of this.

I believe that they are just doing these things to improve what we already have, and that's a good thing we shouldn't just stand and watch, we should be considering some changes. But that doesn't mean that we are going to end up having a trouble. I believe that it is going to be fine and it is going to be good improvement on things that already exists and we should be happy about it. Maybe this isn't some new high tech amazing change, but at least it is there and it is available, good to have it then not.

[stompix]

Well, even if this is centralized and government controlled... I still think misinformed people will follow like sheep and use this service. 

Why do you think those are stupid misinformed sheep?
Are people who use banking payments all over Europe through SEPA imbecile sheep?
Do you actually know what this service is about or you're just shitting on it out of habit?

Your arguments are not baseless because they explain the current condition of the global financial system. According to research, only 4.2% of the population of the world uses cryptocurrencies.

4.2% of the population means 354 million!
With 600k over BTC and 1 million over ETH, it will take 221 days for each of those "users" to make a tx.
So one tx every 7 months would qualify somebody as a user if we think nobody is making two tx in this interval!
4.2% usage is pure bullcrap, maybe 0.42%

With this new service by the Federal Reserve,  the major difference or defining feature should come in how much fees each transaction will attract , but don't see this getting any cheaper than what cryptocurrencies offer today!!

$0.045 vs $0.41 and it doesn't matter how many inputs you have? What's cheaper?

[larry_vw_1955]

$0.045 vs $0.41 and it doesn't matter how many inputs you have? What's cheaper?

i was hoping fednow would be completely free. $0.045 is not completely free. so if they're goal is just to be making money off people I'm not sure how big of a fan I'm going to be of that. but yeah, it's still way cheaper than bitcoin. look at this though:

https://www.pymnts.com/news/retail/2023/walmart-hints-at-early-fednow-adoption-while-amazon-is-mum-so-far/

this story was back in may of this year. long ago and walmart's already kssing up to fednow EVEN BEFORE IT COMES OUT. they never kissed up to bitcoin and bitcoin has been out over a decade...

[dothebeats]

$0.045 vs $0.41 and it doesn't matter how many inputs you have? What's cheaper?

i was hoping fednow would be completely free. $0.045 is not completely free. so if they're goal is just to be making money off people I'm not sure how big of a fan I'm going to be of that. but yeah, it's still way cheaper than bitcoin. look at this though:

https://www.pymnts.com/news/retail/2023/walmart-hints-at-early-fednow-adoption-while-amazon-is-mum-so-far/

this story was back in may of this year. long ago and walmart's already kssing up to fednow EVEN BEFORE IT COMES OUT. they never kissed up to bitcoin and bitcoin has been out over a decade...

It is not surprising that there is a fee as most transaction almost always do. And seeing that it is relatively a lot cheaper than bitcoin it will surely attract more people. It's a basic system we have here, people always go for the cheaper fees no matter what. I mean $0.045 looks better than $0.41, whoever you ask when it comes to fees.

[Abiky]

This system will probably only make the fiat transfer and payment system faster and nothing more. Because basically the fiat used will still be affected by inflation which will continue to occur from year to year. So the role of crypto will remain strong in the world of digital finance. Because crypto has advantages in this type of investment. Be it as a commodity asset or as a security. So crypto lovers should not be affected by this.

FedNow does not appear to be a CBDC but this system is said by some to be the path to the implementation of a central bank digital currency (CBDC) in the United States.

Sourch: https://id.beincrypto.com/layanan-pembayaran-instan-fednow-mulai-aktif-apakah-jadi-jalan-menuju-cbdc-di-as/

It may only be a prototype of what's coming next. By all means, the US is serious in launching a CBDC of its own. Especially when China was the first one to do this. Whenever the Federal Reserve's new money system will use a Blockchain or not, it's yet to be seen. I really don't think it can be called a "Blockchain" because of its centralized design. More like a "digital ledger" controlled by the hands of a few. A better term for it would be Distributed Ledger Tech (DLT). This new system will give the US more power than it already has by allowing it to track and trace transactions at will. It'll be possible to manipulate the supply easily without having to go through the process of printing new banknotes/coins.

BTC won't be affected by FedNow thanks to the way it was designed. With how keen banks and governments are on retaining control of the world's economy, don't expect BTC to take over existing Fiat currencies anytime soon. It will remain an alternative to Fiat forever. I'm fine with that as long as decentralization wins in the long run. Just my thoughts