Another nail in the crypto's coffin.
FedNow Is Live
401–410 of 1001 posts
Re: FedNow Is Live
#402[flagged]
This is not something revolutionary, multiple countries already have instant payment: https://en.wikipedia.org/wiki/Instant_payment. This is just a technical improvement on existing systems. Regarding your questions the FED is simply providing a facility (https://en.wikipedia.org/wiki/Clearing_house_(finance)) that willing participants (the list of early adopters is in the article) can use.
Re: FedNow Is Live
#403So is this gonna kill apps like CashApp and Venmo ?
Re: FedNow Is Live
#404For 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 + 1 millisecond seems impossible. Light can only travel a couple of hundred miles in a millisecond.
Re: FedNow Is Live
#405Earlier quoted context omitted.
Some would say suspiciously so. Which is why some commentators think this is being implemented as a prerequisite of a CBDC.
The FedNow project was in the works long before any serious CBDC idea was conceptualized.
I work with a couple of organisations that have been advising public institutions on their investigations into CBDCs, and the entire timeline of FedNow development took place after CBDCs had initially been conceptualised. CBDCs became a mainstream concept in 2016 when the Bank of England started discussing them publicly. The Faster Payments Taskforce report (which was the basis of FedNow’s design) came out in 2017, and the Fed announced its plans to start work on FedNow in 2019. Many advanced economies announced plans to start seriously investigating the use of CDBCs in 2021, but they’d all been discussing the concept for years at that point.
I don’t know whether the fed’s investigation into CBDCs will result in it adopting one. But FedNow has been designed in such a way that it could easily be modified to support one. You’d just have to implement a version of it where the allowed participants were everybody who’s allowed to have a bank account, rather than only banks.
Re: FedNow Is Live
#406Earlier 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?
T + 1 millisecond seems impossible. Light can only travel a couple of hundred miles in a millisecond.
Re: FedNow Is Live
#407Amazing 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…
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Re: FedNow Is Live
#408Earlier 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.
> I’ve seen a lot of crazy conspiracy theories reveal themselves to be true in the past five years. Such as what? >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. How is this any different from the current system? Your cash is 99% digital anyway with basically every transaction completely monitor-able t…
The principle difference is that CBDC is programmable rather than just digital. We aren't expressing concerns over a digital currency, but rather the degree to which a nefarious govt will have control over it.
Re: FedNow Is Live
#409Earlier 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?
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)
Re: FedNow Is Live
#410Earlier quoted context omitted.
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
Nobody in their right mind is using BQ for oltp workloads