Hacker News Board Hacker News, browsed like a classic message board
Live data from Hacker News

FedNow Is Live

federalreserve.gov

Post reply on HN
Print view View original

451–460 of 1001 posts

Re: FedNow Is Live

#451

Post by hahajk »

konschubert wrote: post #437

It is crazy how much credit card companies get paid just for making sure that money goes from A to B. Yes, they also offer fraud protection and chargeback, but in 90% of purchases, I don't need those. I have other means of establishing trust and recourse, and I just want to send money, instantly. Paying $200 on the internet should cost $0.01, not $10.00. I think there is tremendous opportunity in unbundling payment a…

My intuition is that the existence of fraud protection probably lowers the incidence of people attempting fraud.

I'm someone who (still!) believes in the Bitcoin project but I'm hesitant to use it for online payments because if someone rips me off there's no one I can go to for help.

Re: FedNow Is Live

#452

Post by amflare »

ke88y wrote: post #422
bboygravity wrote: post #264

Earlier quoted context omitted.

Ever heard of cash? I can buy an icecream anywhere in the world without anybody tracking me. Even with the "wrong" political opinion (even if I would be a trucker in Canada during certain protests). I cannot do that with CBDC. No. CBDC (aka: the ultimate totalitarian's dream) is not the same as the current banking system, despite the current banking system also being very horrible for privacy. * All of the above assu…

> I can buy an icecream anywhere in the world without anybody tracking me. No you can't. Companies like OpenEye and Deep Sentinel offer facial recognition solutions that are targeted at loss-prevention, and these systems are commonplace in the USA. Facial recognition-based consumer analytics systems are also available. In fact, I think you'd be hard pressed to find a pint of ice cream that you can buy without having…

So because malicious parties can track us via other means, we should just allow them to start doing it (even more) through our financial history?

Anyways, it's not (fully) about information sharing. It's about control. It's the difference between read access and read/write access.

Re: FedNow Is Live

#453

Post by NavinF »

dheera wrote: post #409
beojan wrote: post #404

Earlier quoted context omitted.

T + 1 millisecond seems impossible. Light can only travel a couple of hundred miles in a millisecond.

So if you're both in NYC it should be fine. At the very least T + ping time + 1 ms And this should be available to customer investors (dudes at home) before retail investors (hedge funds)

"retail investors" normally refers to individuals at home and T+2 doesn't affect them because they have margin accounts.

The only limitation is that if you day trade, you'll need $25k in your margin account. If you don't day trade or you have $25k, you can withdraw $0.01 a few milliseconds after selling $0.01 in shares

Re: FedNow Is Live

#454

Post by HoyaSaxa »

88913527 wrote: post #441
HoyaSaxa wrote: post #314

Earlier quoted context omitted.

TLDR: Nearly all payments will irrefutably settle within a handful of seconds Strictly speaking the primary means in which money moves in the United States from a volume perspective is ACH today. That system is a T+1 day from a default perspective, but it has offered the option to same-day settle during a handful of batches throughout a business day. However, ACH is not irrefutable and so it is common to have holds a…

Couldn't having payments settle so quickly result in increased risk of overall system instability? I don't have a specific example, but I'm thinking of things like bank run panics. I'm sure this sort of thing would have been considered, however.

Yes, it absolutely does increase the overall system instability. However, that is at great benefit to the consumer. There are some safeguards in place in the actual FedNow Service, but it is primarily up to the Service Providers to give the financial institutions tools to manage risk. This includes features like liquidity management, circuit breakers, fraud/compliance monitoring, limits, etc.

Re: FedNow Is Live

#455

Post by Symmetry »

HoyaSaxa wrote: post #298

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

Was it difficult avoiding using an ESB? I've heard stories about how requirements to use those were listed as an example of an interoperable system in law and then ended up being mandated across DoD for everything.

Re: FedNow Is Live

#456

Post by vel0city »

asah wrote: post #388
vel0city wrote: post #343

Earlier quoted context omitted.

I've been receiving my payments digitally from employers in the US for almost 20 years now. I've never in my life received a wage in cash, as in, hard dollars.

...but with days of delay, where someone else is keeping the interest. And maybe charging a transaction fee.

> ...but with days of delay

Maybe a long time ago, but I get my pay which is supposed to be on the 1st and 15th on like the 13th and 29th or something. Getting paid "two days early" is a pretty common feature with Direct Deposit these days. It is always credited to my account before my actual paycheck technically gets posed.

> maybe charging a transaction fee

I imagine someone would be paying for the transaction of physically handling all the cash, no? Its not like having all the logistics of handling cash to potentially thousands of employees is a zero dollar cost. I imagine its massively cheaper for everyone to pay whatever marginal cost my employer is paying for ACH/DirectDeposit through their payroll app than paying a ton of people to handle and keep track of the cash.

Re: FedNow Is Live

#457

Post by HoyaSaxa »

A4ET8a8uTh0 wrote: post #363
HoyaSaxa wrote: post #298

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

Super curious, were you involved in the implementation of ISO20022 from software perspective or were you more on the hardware end? Asking because naturally entire banking in US is kinda waiting to see hows its implementation going to turn out ( for non-fednow payments ).

Software side

Re: FedNow Is Live

#458

Post by itake »

hellojesus wrote: post #375
itake wrote: post #240

Earlier quoted context omitted.

Just wondering, but how is this different from our current system where judges can approve search warrants and companies have to comply? Are you think they won’t need search warrants?

Cash isn't recordable in the same way. I don't provide my id with the transaction when making cash purchases.

I don't think this service is replacing cash payments unless I am missing something?

Re: FedNow Is Live

#459

Post by dools »

634636346 wrote: post #416
prometheus76 wrote: post #383

Earlier quoted context omitted.

The Federal Reserve is a private company with a chair that is chosen by the President of the US with advice and consent from the Senate, and serves a four-year term. There is no term limitation for this office. The reason the US government has a national debt is because that debt is owed to the Federal Reserve, which is a private bank that loans the US government money and that sets the US monetary policy.

>The reason the US government has a national debt is because that debt is owed to the Federal Reserve, which is a private bank that loans the US government money and that sets the US monetary policy. I'm pretty sure every holder of US Treasuries (including me) is owed money by the US government.

Not only that but the cash swapped for bonds is also a liability of the government, so it is just swapping one liability for another.

What we call government debt is just an operational vestige.

Post reply on HN