Will banks be able to charge fees to their customers for using FedNow like wire transfers?
FedNow Is Live
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Re: FedNow Is Live
#22> 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. Whoa. Is this as awesome as it sounds? Is this akin to government-backed Venmo, or something?
> Is this akin to government-backed Venmo, or something? Yes, exactly. But you have to keep in mind that this is a two-edged sword. On the one hand, it's going to be convenient and probably secure. On the other hand, it's going to let the government see every transaction you make, which for some people will be a very high price to pay.
The government can already see all your ACH transactions like payroll, rent, etc because the Fed Reserve literally runs ACH. This also isn't replacing credit cards or the like, so it is basically an ACH replacement.
That's on top of reporting requirements banks already have for your transactions.
Re: FedNow Is Live
#23Here we go. CBDCs are next, and also national Digital IDs. https://m.youtube.com/watch?v=uwRSzNTp2ko Real ID + needing it to browse anything on the Internet: https://community.qbix.com/t/the-coming-war-on-end-to-end-en... From what I see people on HN writing, by and large they downplay the risks of these as well as AI. Or alternately seem to suggest that CBDCs and national IDs are not coming, and that it’s a conspira…
National IDs in the US are never coming because the evangelical base of the GOP literally oppose it for being the "mark of the beast". >Here we go. CBDCs are next, and also national Digital IDs No, this is a long term replacement for ACH, a function that the Federal Reserve was already carrying out.
We already use social security numbers for everything (insurance, credit, etc.). It's pretty much a national ID, just a shitty one.
Re: FedNow Is Live
#24Will banks be able to charge fees to their customers for using FedNow like wire transfers?
They could theoretically, but it is unlikely due to each transaction costing a few cents and the monthly FedNow fee being $25 (it is a utility run on a cost recovery basis). No banks charge for Zelle payments to my knowledge, for example.
This eventually replaces checks, money orders, Zelle, Venmo, ACH, and probably credit card payment volume over time (as seen with UPI in India and PIX in Brazil). Every deposit account can send to other deposit accounts instantly.
Re: FedNow Is Live
#25Here we go. CBDCs are next, and also national Digital IDs. https://m.youtube.com/watch?v=uwRSzNTp2ko Real ID + needing it to browse anything on the Internet: https://community.qbix.com/t/the-coming-war-on-end-to-end-en... From what I see people on HN writing, by and large they downplay the risks of these as well as AI. Or alternately seem to suggest that CBDCs and national IDs are not coming, and that it’s a conspira…
National IDs in the US are never coming because the evangelical base of the GOP literally oppose it for being the "mark of the beast". >Here we go. CBDCs are next, and also national Digital IDs No, this is a long term replacement for ACH, a function that the Federal Reserve was already carrying out.
nothing about singling out people for various reasons and depriving them of basic services? read history much?
Re: FedNow Is Live
#26My concern is that this is a trial run for an official CBDC that will eventually replace cash.
>replace cash That is the most important concern. Not even crypto can beat cash for convenience and anonymity. But having a way to transfer money outside of large corporations and instead through a government regulated service is a good thing.
It makes me question why we allow government to be in charge of our money, and the price of money (interest rate meddling by govt contractor federalreserve). I suppose we grow up with it and don't question it.
Re: FedNow Is Live
#27I'm glad the US is finally catching up the rest of the world...India already has the Unified Payments Interface (UPI) [0]. Additionally, I think fears of this turning into a CBDC are overblown. Banks already have to settle transactions between banks through reserve transfers via the Fed...this will just help automate that process so we can send money from bank account to bank account. Like a Zelle or Venmo, but gover…
India’s system is more usable, though, apparently. This seems like an improvement but it doesn’t do the same thing?
> Because UPI is designed to be intermediated by computers rather than by humans, transactional information gets captured by the payments company while the transaction is in progress, and that can tell the clerk (or cron job) that the payment succeeded without them needing access to the bank account.
> This is a fun engineering challenge in many countries, which are often overlaying bank transfers as a payment method on top of bank transfers as a settlement method.
[…]
> Bank transfers are an extremely small percentage of customer-to-business payments in the U.S. In addition to the speed issue, which might get improved by FedNow when it launches (wags have referred to it as FedLater), bank payments have no consistent way to receive metadata, and despite being no-cost they compete with well-developed credit card ecosystems which credibly offer better-than-free pricing through rewards schemes (to the customer, who generally gets to choose which payment method they use to transact).
https://www.bitsaboutmoney.com/archive/bank-transfers-as-a-p...
Re: FedNow Is Live
#28Earlier quoted context omitted.
National IDs in the US are never coming because the evangelical base of the GOP literally oppose it for being the "mark of the beast". >Here we go. CBDCs are next, and also national Digital IDs No, this is a long term replacement for ACH, a function that the Federal Reserve was already carrying out.
nothing about singling out people for various reasons and depriving them of basic services? read history much?
The government already has the power to do this — just ask any trans person in the South
Re: FedNow Is Live
#29My concern is that this is a trial run for an official CBDC that will eventually replace cash.
FedNow is a replacement for ACH which is an ancient, creaking monstrosity. If we can't ever replace or fix old, busted infrastructure because of conspiratorial rambling, we are fucked as a civilization.
Re: FedNow Is Live
#30Here we go. CBDCs are next, and also national Digital IDs. https://m.youtube.com/watch?v=uwRSzNTp2ko Real ID + needing it to browse anything on the Internet: https://community.qbix.com/t/the-coming-war-on-end-to-end-en... From what I see people on HN writing, by and large they downplay the risks of these as well as AI. Or alternately seem to suggest that CBDCs and national IDs are not coming, and that it’s a conspira…
In this case CBDCs (the interest bearing kind) actually have the potential of disintermediating banks. Or atleast reducing credit/liquidity risk. Grandma's savings/deposits arent going to evaporate the next time a bank collapses. Cause her CBDCs are going to be sitting in her wallet.