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FedNow Is Live

federalreserve.gov

201–210 of 1001 posts

Re: FedNow Is Live

#201
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).

OK.

But it doesn't seem to me like there's a huge difference between "Know Your Customer" + FDIC and Fed Now aside from removing risk to consumers that most people ignore anyhow.

Re: FedNow Is Live

#202
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).

This, ladies and gentlemen, illustrates the point I was trying to make.

Re: FedNow Is Live

#203

Amazing news. Kinda sad to see that Stripe was not on the list of early adopters but I'm sure they will implement it soon. In Switzerland we build an awesome eBill system ontop of the equivalent thing to FedNow. Its all run by Six Group which is the biggest Stock Exchange but it is jointly owned by the big banks and government. So they all agreed to add this eBilling system. Its so much superior to having paper come…

I've been receiving and sending all my bills and invoices by e-mail for the last decade, without any need for some awesome or amazing system. I'm sure millions do the same.

Re: FedNow Is Live

#204
post #199

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?

I assume you are being snippy, but to actually answer the question: Kinda - if you are paid on Fridays then payroll is submitted on Tuesday or Wednesday.

Re: FedNow Is Live

#205
post #159

Earlier quoted context omitted.

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.

That already exists today, food stamps/SNAP/EBT for low income and dollars for everyone else

I'd just as soon give everyone dollars via UBI

Re: FedNow Is Live

#206

Earlier quoted context omitted.

If the government wants to tax these transactions - and let's admit it, they do - they'll take it right off the top. Unlike with the banking system where different banks have different prices for wires - or even free under certain conditions - you can't "shop around" for a new government. Further, if a government determines you are not an "acceptable" participant, they have the ability to stop transactions to/from yo…

> If the government wants to tax these transactions - and let's admit it, they do - they'll take it right off the top. If the federal government wants to tax things they indeed can. But I was asking about a chance from the status quo. If you owe the US government money right now they can take it out of your bank account. > Unlike with the banking system where different banks have different prices for wires - or even…

If the government could stop cash transactions entire classes of crime would be significantly more impractical (while at the same time significantly invading the privacy of all citizens).

Re: FedNow Is Live

#207
post #199

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?

I assume you are being snippy, but to actually answer the question: Kinda - if you are paid on Fridays then payroll is submitted on Tuesday or Wednesday.

No I’m genuinely asking. You get paid at the end of the month, but it actually arrives in your bank 4 or 5 days later?

Re: FedNow Is Live

#208
post #38
post #17

Earlier quoted context omitted.

For one, unlike cash, the issuing entity can program CBDC to expire on a specific date unless utilized. Another horror use case is that they could track and limit how many hamburgers or pizzas you eat daily, weekly, monthly or yearly!

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?

The government could issue money that can be tied to a specific purpose (allowed to be spent with specific merchants or establishments) and have a time limit. Think of the COVID-19 assistance that was given to people. If — instead of just transferring normal money into people’s accounts that allowed people to do whatever they wanted with it whenever they wanted and wherever they wanted - the government could force recipients to spend it across certain things and not others, and gave a deadline to move the money around, would that be something that’s in the best interests of the receiver? By expiring money or by applying negative interest rates, the government can offload its burden on to the people who hold and have to use this money.

Re: FedNow Is Live

#209
post #15

> 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.

paypal , visa and the like have proven to be worse than most governments

Re: FedNow Is Live

#210

> “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…

They're definitely both.
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