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FedNow Is Live

federalreserve.gov

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Re: FedNow Is Live

#71

Post by lockhouse »

SantalBlush wrote: post #33
NoMoreNicksLeft wrote: post #11

Earlier quoted context omitted.

How will they protect us though unless they know the nature of every transaction we participate in? Are you really responsible enough to take care of yourself? A CBDC would combine the best aspects of company scrips with those of wartime ration tickets! I think you should reconsider your stance.

I don't think the government is trying to protect drug dealers or tax evaders from themselves. You intentionally chose a weak argument to fight against.

Thanks, I forgot about all the new taxes this technology could enable. Why not put a tax on every private transaction? Maybe have it increase the closer it gets to the expiration date.

The amount of people rooting for big brother here on HN lately is frankly terrifying.

Re: FedNow Is Live

#72

Post by constantcrying »

landemva wrote: post #26
constantcrying wrote: post #14

Earlier quoted context omitted.

>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.

>It makes me question why we allow government to be in charge of our money

This isn't true. Private currencies exist(ed) and are afaik still legal.

The reason we put governments in charge of our money is that up until about a decade ago it was either the government or a corporation as a decentralizes currency was not really implementable. Do you want to get paid in amazon coins only redeemable on amazon? No, you do not.

>interest rate meddling by govt contractor federalreserve

You need to do that. Any currency needs some mechanism to control issuing. If not the government who else could do that?

Re: FedNow Is Live

#73

Post by lockhouse »

Clent wrote: post #60
staringback wrote: post #41

Earlier quoted context omitted.

My Citi Custom Cash card gives me 5% back on gas station purchases (my highest category), even paying the higher price at the pump for credit cards I still come out ahead. I'm fairly certain Citi is not making 5% on interchange fees

Isn't it easier to assume Citi is recovering the 5% via interchange fees versus Citi is losing money every time a customer uses an advertised card feature.

It is almost certainly from compound interest.

Re: FedNow Is Live

#74

Post by Spooky23 »

staringback wrote: post #41
toomuchtodo wrote: post #32

Earlier quoted context omitted.

Reward schemes are funded by interchange fees funded by higher product prices. They are a tax on the entire economy. Merchants can push the CC fees to customers who opt to pay with CCs vs cheap or free instant payment systems. T-Mobile has dropped autopay discounts if you use a credit card vs deposit/bank accounts for payment, for example. Walmart wrote public comments on this topic supporting the FedNow implementati…

My Citi Custom Cash card gives me 5% back on gas station purchases (my highest category), even paying the higher price at the pump for credit cards I still come out ahead. I'm fairly certain Citi is not making 5% on interchange fees

It’s a loss leader that is usually capped. They are marketing against other cards in your wallet. Most consumers use a card or two so the habit of buying gas drives more spend.

Discover does the same thing with quarterly promos. They are paying 5% for the first $1500 of Apple Pay/Google Pay transactions… an incentive to add Discover to your wallet.

Gas is also unique. Our local supermarket chain gives you gas discounts for spend. People are always annoyed about gas so they fixate on saving $1/gallon, forgetting that they spent $1000 at the most expensive grocery chain so they can save $12-20 for a fillup. That $12 probably cost them $50.

Re: FedNow Is Live

#75

Post by OGWhales »

solardev wrote: post #7
EGreg wrote: post #5

Here 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…

I would love to see government IDs be available as a form of auth on the internet. It would open up the possibility of real-person communities with fewer bots and trolls. Similarly with digital payments, I'd much rather trust the government with that than some rando cryptobro of the week. There is nothing extreme about this. The government already does both functions in the analog world. It's about time they caught u…

My concern with digital payments is the elimination of cash. Having the ability to transfer value without it being monitored or blocked is an exceptionally useful property of paper money.

Re: FedNow Is Live

#76

Post by compsciphd »

ksey3 wrote: post #30
EGreg wrote: post #5

Here 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.

if they are interest bearing, there will always be some risk involved by definition....

Re: FedNow Is Live

#77

Post by solardev »

drivebyhooting wrote: post #48
WeylandYutani wrote: post #45

Earlier quoted context omitted.

I agree I'm more concerned about Silicon valley tech bros than my own government. I can vote for Parliament I can't vote for PayPal's board of directors.

PayPal doesn’t have a military and doesn’t extract taxes from you though.

The military? When was the last time they turned on the citizens? I don't live in Tiananmen, thankfully. Meanwhile it's private companies that oppress most of us: private hospitals, private prisons, private insurances companies, private credit bureaus, private banks, private tech companies, private surveillance companies, private small arms manufacturers and dealers. It ain't the government that's crimping my freedoms.

Taxes? So I get some roads and schools and parks and old people healthcare, and lose some to corruption. Better that than making Bezos and Zucky even richer.

Re: FedNow Is Live

#78

Post by jaywalk »

xxpor wrote: post #52
toomuchtodo wrote: post #24

Earlier quoted context omitted.

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 acco…

is the fee on a per bank or per account basis?

Per bank. $25/month/account would be insane.

Re: FedNow Is Live

#79

Post by NoMoreNicksLeft »

lockhouse wrote: post #71
SantalBlush wrote: post #33

Earlier quoted context omitted.

I don't think the government is trying to protect drug dealers or tax evaders from themselves. You intentionally chose a weak argument to fight against.

Thanks, I forgot about all the new taxes this technology could enable. Why not put a tax on every private transaction? Maybe have it increase the closer it gets to the expiration date. The amount of people rooting for big brother here on HN lately is frankly terrifying.

I have so many problems in my personal life, and I don't know how else they could be solved except for the government to carefully micromanage that for me.

Re: FedNow Is Live

#80

Post by ellisv »

oaththrowaway wrote: post #43
kemotep wrote: post #38

Earlier quoted context omitted.

Why would the government program money to expire? Would the money not become effectively worthless the closer to the expiration date? Why would a business accept transactions from people with money that’s about to expire would that then mean they would be giving away goods and services for free potentially?

I assume that the TTL of the money would reset once it has changed hands

I assume it would accelerate.
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