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FedNow Is Live

federalreserve.gov

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Re: FedNow Is Live

#461

Post by [deleted] »

dylanlacom wrote: post #417
Analemma_ wrote: post #262

Earlier quoted context omitted.

Are you under the impression that ACH, the thing FedNow is replacing, is free from government influence? This is what's bizarre to me about the FedNow hysteria. It's not a government system replacing a private market system. It's a government system replacing an older, worse government system. It's like having a panic attack because the Federal Reserve is updating their PCs to from Windows XP to Windows 10.

Because Nacha (and ACH) is explicitly not a government system

[deleted]

Re: FedNow Is Live

#462

Post by jcadam »

hammock wrote: post #443
634636346 wrote: post #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.wikipe…

What is the Kiwi Farms?

Be happy that you do not know.

Re: FedNow Is Live

#463

Post by biesnecker »

PaulDavisThe1st wrote: post #446
dylanlacom wrote: post #417

Earlier quoted context omitted.

Because Nacha (and ACH) is explicitly not a government system

ACH involves the Federal Reserve Bank in every transfer. FedNow involves the Federal Reserve Bank in every transfer.

To be fair only about half of US ACH traffic flows through the Fed (the other half goes through the Clearing House Payments Company), but the Fed is very much involved (and a critical component of) the ACH network, even if the system is not explicitly a government one.

Re: FedNow Is Live

#464

Post by LegitShady »

hammock wrote: post #443
634636346 wrote: post #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.wikipe…

What is the Kiwi Farms?

A toxic website where online trolls discuss other personalities, mostly online, in a toxic way.

Re: FedNow Is Live

#465

Post by kredd »

bboygravity wrote: post #264
chimeracoder wrote: post #235

Earlier quoted context omitted.

> 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.

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…

The reality is, supermajority (including me) of people prefer not using cash. Especially up here in the North.

Can’t even recall to ever pulling some out other than some casino entertainment night. I understand all the “freedom” (or whatever one might call it) I’m losing, but the positive sides are much better (never have to care about losing my wallet, much faster transactions, convenience and etc.). Sure, sounds bad on paper, but I haven’t felt any negatives in 10+ years, especially when in practice makes my life easier.

Re: FedNow Is Live

#466

Post by yieldcrv »

adventured wrote: post #358
mavili wrote: post #301

Earlier quoted context omitted.

> This would cut alot of middle companies out of the payments industry Not really. All it will do is let the same companies change the way they handle average citizens' payments. It's the same as Open Banking in Europe. It is supposed allow small businesses to leverage this to enable innovation and all that stuff, but when you want to use these APIs you find there are limitations on who can actually use it. For examp…

It's not particularly difficult for a small start-up to come up with $25,000 in the US. That's modest angel investor money in a small city.

Aside from playing devil’s advocate, do you have a sensible reason why it should be this way versus another way?

Re: FedNow Is Live

#467

Post by PaulDavisThe1st »

CameronNemo wrote: post #182
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.

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...

IRS auditing targeting has been at the explicit behest of Republican controlled Congresses. That is, they were told to stop/reduce targetting high net worth individuals, or face even further cuts to their budget.

Re: FedNow Is Live

#468

Post by supernova87a »

I haven't learned all the details of the service yet, but I hope this helps eliminate the ridiculous check-based / Zelle fraud that seems to be growing (or at least, seems to be highlighted in news and discussion as growing).

The very fact that we have money that can appear to be yours initially, but then removed from your account if a check is reversed or disputed is costing people in time and $, and benefitting fraudsters. (advance fee fraud, Zelle "mistakes", and similar). 3 day clearing times that give people an opportunity to be scammed.

Although, irreversible + instant payments may open some new types of problems for people, I could totally see that. But people will need to learn how to deal with this more rational system. Other countries are decades ahead of us in that you are the one who has to initiate payments from your account, and only you can do that, and payments are instant and settled.

Re: FedNow Is Live

#469

Post by s3p »

lisper wrote: post #15
mydriasis wrote: post #2

> 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.

Ok but.. ACH

Re: FedNow Is Live

#470

Post by zirgs »

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.

Payment processors like VISA can already block payments that they don't like. Even if they are completely legal.
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