The Fed is getting into the Real-Time payments business
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Re: The Fed is getting into the Real-Time payments business
#2Some real-time payment infrastructures to compare to:
UK - Faster Payments Service (2008) https://en.wikipedia.org/wiki/Faster_Payments_Service
EU - SEPA Instant Credit (2017) https://en.wikipedia.org/wiki/Single_Euro_Payments_Area#SEPA...
Australia - New Payments Platform (2018) https://en.wikipedia.org/wiki/New_Payments_Platform
Re: The Fed is getting into the Real-Time payments business
#3RIP Zuckbucks ️
This removes a huge part of the mainstream rationale for digital alternative currencies.
Re: The Fed is getting into the Real-Time payments business
#4I'm still hoping for something similar where I currently live, here in Switzerland (not in the EU). Payments generally arrive the next business day but that isn't good enough for most in-person transactions.
Re: The Fed is getting into the Real-Time payments business
#5RIP Zuckbucks ️ This removes a huge part of the mainstream rationale for digital alternative currencies.
Which in itself is one of the biggest rationales for developing such a system. The Fed really has a third unspoken directive: maintain dollar supremacy.
Re: The Fed is getting into the Real-Time payments business
#6Good lord, that's an awful name for something like that.
Re: The Fed is getting into the Real-Time payments business
#7Some real-time payment infrastructures to compare to: UK - Faster Payments Service (2008) https://en.wikipedia.org/wiki/Faster_Payments_Service EU - SEPA Instant Credit (2017) https://en.wikipedia.org/wiki/Single_Euro_Payments_Area#SEPA... Australia - New Payments Platform (2018) https://en.wikipedia.org/wiki/New_Payments_Platform
NPP has been hugely beneficial for p2p. I've used it and now trust it implicitly, as a mechanism.
Being stuck in cheque clearing bank settlement delay is a royal pain.
International funds clearance and KYC remain problems.
Re: The Fed is getting into the Real-Time payments business
#8> [Interoperability between all banks has] been one of the arguments for blockchain-based payment systems like Facebook's (FB) Libra, which would circumvent the need for third-party payment settlement. During two Congressional hearings on Libra last month, some lawmakers called on the Fed to create a real-time payment system itself rather than having to rely on a network developed by Facebook.
It's a reminder that blockchain solutions aren't as useful if there actually is a trusted central entity, upon whose sterling reputation the global economy relies in the first place, to record transactions. And it does speak to a mission to regulate and facilitate interstate commerce. If they get the branding and execution right this could be huge for enabling micro-entrepreneurship. Of course, they won't get it right, but one can dream.
Re: The Fed is getting into the Real-Time payments business
#9FedACH is already widely used- this makes perfect sense. All US Banks are part of the Federal Reserve system, so it makes sense for the FRB (which is the entity being discuessed here) to drive this with the help of each Federal Reserve branch.
Re: The Fed is getting into the Real-Time payments business
#10Some real-time payment infrastructures to compare to: UK - Faster Payments Service (2008) https://en.wikipedia.org/wiki/Faster_Payments_Service EU - SEPA Instant Credit (2017) https://en.wikipedia.org/wiki/Single_Euro_Payments_Area#SEPA... Australia - New Payments Platform (2018) https://en.wikipedia.org/wiki/New_Payments_Platform
Also, despite not technically being a governmental operation, see https://en.wikipedia.org/wiki/Unified_Payments_Interface, from India.