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Good lord, that's an awful name for something like that.
Especially for something that’s actually not available now but in five years ...
> The rapid evolution of technology presents a pivotal opportunity for the Federal Reserve and the payment industry to modernize the nation's payment system and establish a safe and efficient foundation for the future.
RIP Zuckbucks ️ This removes a huge part of the mainstream rationale for digital alternative currencies.
Which in itself is one of the biggest rationales for developing such a system. The Fed really has a third unspoken directive: maintain dollar supremacy.
"Treasury takes very seriously the role of the US Dollar as the world's reserve currency, and will continue our efforts to protect our country".
https://m.youtube.com/watch?v=zAICzg8ir50&t=370&feature=yout...
Earlier quoted context omitted.
I think reversibility/non-immutability is one of the sides of this iron triangle, as Bitcoin currently supports all three you listed, but is a fraud risk because while you can transfer a practically unlimited amount globally for $1 in an hour, there is no “undo”, which is, in various ways, a blessing and a curse.
Bitcoin holder and user for ~5 years here. As a comparison of two of those features, against Faster Payments (which is what the Fed is proposing creating a similar system to): Bitcoin is slow - it takes minimum 10 mins with high fees, or in times of congestion, hours or days with low fees. Faster payments takes minimum a few seconds, maximum 2 hours, for processing, no fees involved. Bitcoin is expensive - fees are v…
Also, you cite speed, but Bitcoin transactions confirm sufficiently in the usual case in 20-40 minutes, where two hours is the upper bound you mentioned for the new fed system.
Bitcoin is also functioning today, isn’t censorable, and is transnational. The new fed system isn’t due to be operational for years, and will only serve a single country with fewer than 4% of humans living in it.
I think you are exaggerating the downsides of code that is working and providing value today.
Good amount of detail here including flow: https://www.federalreserve.gov/newsevents/pressreleases/file... “...In its simplest form, a completed payment through the FedNow Service involving two participating banks would have the following steps.103 To start, a sender would initiate a payment through its bank, by submitting instructions to it using an end-user interface outside the FedNow Service. After the sender’s b…
RIP Zuckbucks ️ This removes a huge part of the mainstream rationale for digital alternative currencies.
Libra can still provide hassle-free currency access from within supporting apps and Web sites. Also it can provide "free" transactions whereas FedNow won't be free.
For 99% of legal money senders this removes the need to consider Bitcoin or most shitcoins.
The only use case left for crypto, which Bitcoin itself has somewhat neglected, is anonymous uncensored payments. And that's the one that doesn't work because it's extremely hard to get in and out without being noticed.
Good amount of detail here including flow: https://www.federalreserve.gov/newsevents/pressreleases/file... “...In its simplest form, a completed payment through the FedNow Service involving two participating banks would have the following steps.103 To start, a sender would initiate a payment through its bank, by submitting instructions to it using an end-user interface outside the FedNow Service. After the sender’s b…
Is the primary role of the Fed in this case as an arbiter for disagreements? Why can't the banks achieve the same directly between each other using an agreed upon protocol?
Some real-time payment infrastructures to compare to: UK - Faster Payments Service (2008) https://en.wikipedia.org/wiki/Faster_Payments_Service EU - SEPA Instant Credit (2017) https://en.wikipedia.org/wiki/Single_Euro_Payments_Area#SEPA... Australia - New Payments Platform (2018) https://en.wikipedia.org/wiki/New_Payments_Platform
https://www.bcb.gov.br/en/financialstability/paymentsystem
> Guidelines for the Brazilian Instant Payments Ecosystem: The Brazilian instant payments ecosystem will have a flexible and open participation structure and will be similar to the existing interbank electronic funds transfer (TED)—with greater availability, speed, and simpler addressing of payments. The transactions will be performed in a simple and fast way to different beneficiaries. Moreover, the BCB (Brazilian Central Bank) will develop a single settlement infrastructure.