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FedNow Is Live

federalreserve.gov

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Re: FedNow Is Live

#191

Post by cameldrv »

lisper wrote: post #15
mydriasis wrote: post #2

> 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.

I don't see how this is much different than the current situation. The Fed already processes ACH transactions (basically all bill-pay, most transfers to/from Paypal/Venmo etc), and all wire transfers (most high dollar money transfers)

Re: FedNow Is Live

#192

Post by TechBro8615 »

2143 wrote: post #179

Funny thing about topics like this is that people of any given country is oblivious to how other countries have solved that problem, or the challenges other countries face, or inturn the problems that they themselves face. Regarding payment systems specifically, people generally don't realize what they're missing. Pick anybody from anywhere and they'll tell you they've been able to do everything they ever wanted to d…

Sure, but in most countries, those services are provided by banks, not the government. There is certainly something to be said for legislation like open banking regulations that encourages/forces banks to facilitate instant peer to peer payments. But that's a far cry from a service offered directly from the government (okay, technically the fed isn't the government, but it may as well be).

Re: FedNow Is Live

#194

Post by carlosjobim »

iudqnolq wrote: post #20
lisper wrote: post #15

Earlier quoted context omitted.

> 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.

> On the other hand, it's going to let the government see every transaction you make Can you go into more detail here on what you think will change from the status quo? Existing bank transfers are obviously not secret from the government on request. While the government doesn't have direct access to run search heuristics on the whole dataset they just delegate that to the banks' internal compliance team.

Automated surveillance and automated interference. If you think YouTube's algorithms for determining copyright or Facebooks algorithms for "community standards" are bad, wait until you have your bank account locked and can't buy food.

Re: FedNow Is Live

#195

Post by HideousKojima »

the-dude wrote: post #121
lockhouse wrote: post #56

Earlier quoted context omitted.

I’ve seen a lot of crazy conspiracy theories reveal themselves to be true in the past five years. Apply some critical thinking on this. Governments and corporate elites worldwide are salivating over the level of surveillance and control that a CBDC will enable.

Which crazy conspiracy theories are you referring to? I am applying some critical thinking here.

The NSA monitoring any and all electronic communications (foreign and domestic) that they can get their hands on, without a warrant.

The federal government cutting off financial services for legal but disliked industries such as the gun industry (see the Obama admin's Operation Chokepoint).

The Canadian government freezing the bank accounts of those who supported the trucker protest.

Not directly related to finances or electronic surveillance, but some government fuckery greatest hits that actually happened:

- Kidnapping hobos and force feeding them LSD

- Intentionally infecting people (mostly black) with syphilis

- Feeding irradiated oatmeal to mentally handicapped children

- Obama personally ordering the execution of an American citizen without trial and having the military carry it out (and killing the target's 16-year old American citizen son as well)

Re: FedNow Is Live

#196

Post by bluescrn »

lbotos wrote: post #159
tjpnz wrote: post #149

I don't understand why FedNow and CBDC are such a big issue in the US. FedNow looks quite attractive from a fees perspective, especially when compared to PayPal and alike. Part of me wonders if the middlemen who stand to lose out might be trying to muddy the waters. It wouldn't be the first time.

Because there are many Americans who are small gov and against excessive taxation. A CBDC is "too far" for a lot of people who believe that.

Imagine being paid in a ‘programmable’ currency that your employer (or government) decides cannot be spent on alcohol, meat, or fossil fuels.

Meanwhile, wealthier people get paid in ‘unrestricted’ currency.

Re: FedNow Is Live

#197

Post by jonhohle »

CameronNemo wrote: post #182
tjpnz wrote: post #149

I don't understand why FedNow and CBDC are such a big issue in the US. FedNow looks quite attractive from a fees perspective, especially when compared to PayPal and alike. Part of me wonders if the middlemen who stand to lose out might be trying to muddy the waters. It wouldn't be the first time.

Two points of context: * the Biden administration is planning to monitor smaller denomination transactions (in an inflationary environment!) * IRS resources historically and presently target low-income, low-wealth households/individuals for audits https://www.cnbc.com/select/irs-600-reporting-rule-delayed/ https://www.cbsnews.com/news/irs-audit-eitc-five-times-as-li...

What benefit would targeting low wealth individuals have to the IRS? I worked on a state tax system briefly at Accenture and they offered the product for a percentage of reclaimed taxes. They started with high debts with good credit scores. Since they had skin in the game (which it could be argued the IRS doesn’t), they wanted to maximize the unpaid taxes they collected.

Re: FedNow Is Live

#198

Post by ishanjain28 »

mixmastamyk wrote: post #167
ishanjain28 wrote: post #123

Do they have a simpler use id like india's upi?(userHandle@bankHandle) In the demos I watched, There is account number and routing number

Address book and search can help with that. Worked in NZ anyway.

well yes but the addressing scheme we use here is so much simpler. I hope they incorporate it at some point

Re: FedNow Is Live

#199

Post by orf »

Welcome to 2002 I guess? I’m surprised you couldn’t already do this.

What happens when you get paid? It comes several days later?

Re: FedNow Is Live

#200

Post by gumby »

uses wrote: post #166
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.

The fed lists a number of service providers on their page. I assume they will now roll out some interfaces. Glad to see the US banking system start to catch up with the rest of the world ca mid 90s.
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