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FedNow Is Live

federalreserve.gov

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Re: FedNow Is Live

#331
post #8

Earlier quoted context omitted.

It's bad enough that banks have virtually unlimited insight into my spending habits that we need to give the Feds the same access. I should have the right to buy a big mac without some government server getting pinged.

Another concern I have heard voiced is that CBCD could be programmed - eg. you can't buy X, or you can only buy Y at certain times, or for certain prices, etc. and has the potential for reduced liberty vs. cash.

It is called EBT and it already exists and the thing is people demand this for welfare payments all the time.

Re: FedNow Is Live

#332
post #305

For those curious, it is really using IBM MQ[1] under the hood and uses a bespoke flavor of the ISO 20022 specification. The FedNow Service itself is the tip of the iceberg in terms of what actually happens from an end-to-end perspective. We've been working to become a Certified Service Provider so feel free to ask me anything. I'm happy to share anything that is not under NDA. [1] https://www.ibm.com/products/mq

Does this end the T + 2day ridiculousness? It should be T + 1millisecond at worst. What does it take to update 2 "balance" values in databases?

T + 2day is ridiculous. T + 1ms is also ridiculous (speed of light and all.)

Re: FedNow Is Live

#333

Earlier quoted context omitted.

It can also be programmed with an expiration date to encourage you to spend it to stimulate the economy instead of saving it.

It could also be geofenced. Can't use your phone to buy fireworks from out of state because it's illegal in your state. Or you can only spend this money at a local store, but not at a store in another town.

How to get voted out of office immediately.

Re: FedNow Is Live

#334
post #305

Earlier quoted context omitted.

Does this end the T + 2day ridiculousness? It should be T + 1millisecond at worst. What does it take to update 2 "balance" values in databases?

The problem is, which "database"? If you know the data is always going to be in the range of ~1TB, use Postgres or some other ACID database. But I don't know of any petabyte scale ACID compliant database. Also I'm not sure if ACID is sufficient or not for banking systems.

BigQuery is ACID compliant and easily handles petabytes.

https://cloud.google.com/bigquery/docs/introduction

Re: FedNow Is Live

#335
post #166

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.

It won't take long before all banks are using it. Once the banks are using it, employers will begin making payments using it. Once employees are receiving digital currency payments from employers, cash will end soon after.

Re: FedNow Is Live

#336
I know that these are famous last words on Hacker News, so I post them very hesitantly...but presumably this is bad news for Plaid, right?

Re: FedNow Is Live

#337
post #336

I know that these are famous last words on Hacker News, so I post them very hesitantly...but presumably this is bad news for Plaid, right?

Wouldn't it also be real bad news for Zelle? And in theory Venmo/Cashapp/etc

Re: FedNow Is Live

#338
> 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.

Come on... Being capable of sending money to someone easily should not be based on the bank.

Re: FedNow Is Live

#339

Earlier quoted context omitted.

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…

> The NSA monitoring any and all electronic communications (foreign and domestic) ... Not revealed in the last 5 years. > The federal government cutting off financial services for ... Not revealed in the last 5 years. Was this subject of an actual conspiracy theory? > The Canadian government freezing the bank accounts of those who supported the trucker protest. At least this is within 5 years. I can't judge if this w…

I'm writing this post for whoever is interested, so please don't take it as specifically directed towards you.

People who doubt the government and especially the fiat monetary system usually end up as "gold bugs", they start preparing for financial collapse by purchasing physical gold. Before the 2008 financial crisis, I was involved in gold circles online and everybody there knew a huge crisis was coming and they were buying as much gold as they could. Now, the price of physical gold (and many other commodities) are determined by the prices on the Comex futures exchange, which are under the control of an oligarchy of big banks.

During the financial crisis and the years after, most gold traders and gold bugs noticed that the gold price would drop every day about 09:00 on the New York Spot market, and everybody was talking about how the big banks were illicitly manipulating the gold price to try to keep it down. Of course this talk was dismissed by uninvolved as loony conspiracy theories, together with every other insulting and dismissing adjective that commenters here are so fond of.

But it turned out that the conspiracy was true, and in 2022 a couple of the bankers' fall guys were sentenced, and JP Morgan agreed to pay $920 million in fines[1]:

"The evidence at trial showed that between approximately May 2008 and August 2016, the defendants, along with other traders on the JPMorgan precious metals desk, engaged in a widespread spoofing, market manipulation, and fraud scheme. The defendants placed orders that they intended to cancel before execution in order to drive prices on orders they intended to execute on the opposite side of the market. The defendants engaged in thousands of deceptive trading sequences for gold, silver, platinum, and palladium futures contracts traded through the New York Mercantile Exchange Inc. (NYMEX) and Commodity Exchange Inc. (COMEX), which are commodities exchanges operated by CME Group Inc."

[1] https://www.justice.gov/opa/pr/former-jp-morgan-traders-conv...

The same things are going on all the time, sometimes the perpetrators are banking giants, sometimes the government or parts of government, sometimes tech giants, sometimes it's all of them together, sometimes other perpetrators.

Re: FedNow Is Live

#340
It will be interesting to see how this affects "toxic," deplatformed, and to some degree debanked (at least from PayPal and CC processors) entities, like the KiwiFarms. While this page is somewhat vague about the private/public status of the Fed: https://www.federalreserve.gov/faqs/about_14986.htm

it seems pretty well established that federally chartered corporations, like the USPS and Amtrak (e.g., https://en.wikipedia.org/wiki/Lebron_v._National_Railroad_Pa...), are bound by the first amendment, so theoretically the Fed should be as well.

That means the usual "it's a private corporation!" defense of corporate censorship is probably off the table.

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