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FedNow Is Live

federalreserve.gov

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Re: FedNow Is Live

#161

Post by dboreham »

solardev wrote: post #23
delfinom wrote: post #13

Earlier 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.

We already use social security numbers for everything (insurance, credit, etc.). It's pretty much a national ID, just a shitty one.

USG has issued national ID documents for more than 200 years. They're called passports.

Re: FedNow Is Live

#163

Post by mixmastamyk »

ProllyInfamous wrote: post #144
mixmastamyk wrote: post #117

Fantastic, although not a peep from my bank. Articles seem to imply that it can work in complement to zelle, so that may extend it’s reach quite a bit, no?

>not a peep from my bank Why would a for-profit banking institution actively advertise for something that will affect its bottom line (e.g. transfer fees)..?

My bank doesn’t charge transfer fees. Not sure what that means, credit card fees? That’s charged by the network.

Obviates old-fashioned wires I suppose but those are rare and fee sometimes waived. Probably save money by reducing employee headcount.

Re: FedNow Is Live

#164

Post by constantcrying »

ProllyInfamous wrote: post #144
mixmastamyk wrote: post #117

Fantastic, although not a peep from my bank. Articles seem to imply that it can work in complement to zelle, so that may extend it’s reach quite a bit, no?

>not a peep from my bank Why would a for-profit banking institution actively advertise for something that will affect its bottom line (e.g. transfer fees)..?

Because customers demand it and any bank which has it can attract customers from banks which don't.

A system like that exists in Europe already, banks operate for profit there too.

Re: FedNow Is Live

#166

Post by uses »

no_wizard wrote: post #96

Is there going to be a universal SDK / API we can use with this? This would cut alot of middle companies out of the payments industry (or at least put pressure on lowering fees). That would be a huge win. Wish we could do the same for the credit card companies. Would be great if the Federal Government could intervene in some way to have Visa / Mastercard / American Express / Discover use the same API interface for pa…

Currently this works between banks only. Banks have reserves at the Fed, and those reserves are what gets adjusted when a FedNow transaction happens. The banks then adjust their own records on their customers' behalf.

Re: FedNow Is Live

#168

Post by karaterobot »

CameronNemo wrote: post #145
karaterobot wrote: post #132

> “The FedNow Service is neither a form of currency nor a step toward eliminating any form of payment, including cash.” What people are accusing them of is taking steps toward creating a digital dollar. This is their response, which is pretty mealy-mouthed if it's meant to address those accusations. A better way to express a denial would be "the Federal Reserve has no intention of creating a digital dollar and is not…

This seems like a very opinionated take. The CBDC is still planned. But way far in the future (couple years, at least). And why wouldn't it solve settlement itself? FedNow is shipping today. If it is not the future solution, that is fine. It gives us better performance now.

I actually don't have a strong opinion about the digital dollar. I learned about it as a concrete idea in this very article. My opinion is: sounds reasonable, probably pretty complicated to pull off. I am opinionated when it comes to bad, weasely non-answers to questions though, if that's what you mean.

Re: FedNow Is Live

#169

Post by rowls66 »

no_wizard wrote: post #96

Is there going to be a universal SDK / API we can use with this? This would cut alot of middle companies out of the payments industry (or at least put pressure on lowering fees). That would be a huge win. Wish we could do the same for the credit card companies. Would be great if the Federal Government could intervene in some way to have Visa / Mastercard / American Express / Discover use the same API interface for pa…

Shameless plug, but Moov offers a single API for payments. The clearing house's RTP system will be supported shortly, and FedNow is coming soon after. Check out out here: https://moov.io/

Re: FedNow Is Live

#170

Post by jsmith45 »

delfinom wrote: post #19
kak3a wrote: post #16

why? don't we already have Zelle and Venmo that does just that?

Zelle is closed to the few banks that partner with the private banks that run it. Venmo is a private company that siphons your data for sale. FedNow is a long-term replacement of ACH, which the Fed Reserve banks already run. This system is open to all US financial entities. The platform also uses a ISO standard https://www.frbservices.org/financial-services/fednow/prepar...

The Federal reserve banks are only one operator of ACH, with there also being a second private operator. The fed denies that Fednow will replace ACH.

Not sure if that denial makes much sense, although it certainly could take a long time to replace ACH even if it eventually does, simply due to how many systems interact over ACH, and that many of them will not be high priority to change.

I'm also a little surprised that FedNow went with real-time gross settlement, simply because that means posting every transaction to a Federal reserve account (which would be a large increase in transaction volume for those accounts, relative to say daily or even hourly net settlement). Reading Operating Circular No. 8 tells me that is exactly what they are doing, which is honestly a little impressive.

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