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FedNow Is Live

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Re: FedNow Is Live

#231

Post by DeRock »

staringback wrote: post #36
toomuchtodo wrote: post #24

Earlier quoted context omitted.

They could theoretically, but it is unlikely due to each transaction costing a few cents and the monthly FedNow fee being $25 (it is a utility run on a cost recovery basis). No banks charge for Zelle payments to my knowledge, for example. This eventually replaces checks, money orders, Zelle, Venmo, ACH, and probably credit card payment volume over time (as seen with UPI in India and PIX in Brazil). Every deposit acco…

Given how generous credit card rewards are in the US, combined with the interest rates that get charged to people who buy things they can't afford, I don't see it replacing credit cards.

You need to see it from the merchants perspective. What if they offered you a 5% discount for paying with FedNow?

Re: FedNow Is Live

#232

Post by hrdwdmrbl »

bluescrn wrote: post #196
lbotos wrote: 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.

A CBDC does not necessarily need to be implemented with that capability.

Re: FedNow Is Live

#233

Post by the-dude »

HideousKojima wrote: post #195
the-dude wrote: post #121

Earlier quoted context omitted.

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…

> 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 was an actual conspiracy theory or not ( I don't think so ).

> - 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 ...

All of those AFAIK not revealed in the last 5 years.

Re: FedNow Is Live

#234

Post by SantalBlush »

lockhouse wrote: post #71
SantalBlush wrote: post #33

Earlier quoted context omitted.

I don't think the government is trying to protect drug dealers or tax evaders from themselves. You intentionally chose a weak argument to fight against.

Thanks, I forgot about all the new taxes this technology could enable. Why not put a tax on every private transaction? Maybe have it increase the closer it gets to the expiration date. The amount of people rooting for big brother here on HN lately is frankly terrifying.

I'm not rooting for or against anything other than shitty arguments. I come to this site to read smart takes, not half-baked sarcastic nonsense. Based on what I'm reading, maybe that's asking too much.

Re: FedNow Is Live

#235

Post by chimeracoder »

hitpointdrew wrote: post #224
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.

> I don't understand why ~FedNow and CBDC~ BIG BROTHER are such a big issue in the US. Fixed this for you. I don't really want a gigantic federal agency having insight into every financial transaction I make. Hard, fucking, pass.

> I don't really want a gigantic federal agency having insight into every financial transaction I make. Hard, fucking, pass.

If that's the case, I have bad news for you about the banking system of literally every developed country.

Re: FedNow Is Live

#236

Post by TechBro8615 »

nordsieck wrote: post #201
TechBro8615 wrote: post #192

Earlier quoted context omitted.

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.

There's a big difference between checking passports before onboarding a customer, and sending every transaction to the federal government in real time.

Re: FedNow Is Live

#237

Post by tomcam »

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…

Not my good friend from Tuvalu

Re: FedNow Is Live

#238

Post by solardev »

niam wrote: post #89
solardev wrote: post #7

Earlier quoted context omitted.

I would love to see government IDs be available as a form of auth on the internet. It would open up the possibility of real-person communities with fewer bots and trolls. Similarly with digital payments, I'd much rather trust the government with that than some rando cryptobro of the week. There is nothing extreme about this. The government already does both functions in the analog world. It's about time they caught u…

I don't trust the govt quite as much as you, but could see this being a useful govt function if the issuing body didn't maintain any record of when, where, or why an ID was used--and only acted to verify the authenticity of an ID.

I don't know if it's really a matter of "trusting" the government, but of accepting that they already have access to most of my data anyway. Between credit cards, IP logs, subpoenas, national security letters, warrantless wiretapping, etc., they already know everything there is to know about me.

What makes this tradeoff (of convenience vs privacy) acceptable to me is not that I trust the government, but that I already accept I have near-zero privacy right now, as it is. Making it slightly easier for them isn't a big deal. I'm not a very exciting person to begin with.

And frankly I suspect that outside of techno-libertarian echo chambers, this is the case for most regular people. They just don't really care if the government knows about them. Not everyone has the same degree of desire/need for privacy.

Re: FedNow Is Live

#239

Post by CameronNemo »

jonhohle wrote: post #197
CameronNemo wrote: post #182

Earlier quoted context omitted.

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.

Tax collectors have traditionally extracted from low wealth individuals to enrich wealthy individuals.

I'll let you figure out why.

Re: FedNow Is Live

#240

Post by itake »

hitpointdrew wrote: post #224
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.

> I don't understand why ~FedNow and CBDC~ BIG BROTHER are such a big issue in the US. Fixed this for you. I don't really want a gigantic federal agency having insight into every financial transaction I make. Hard, fucking, pass.

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?

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