The FedNow services are aiming to reduce the payment time gap between them and the financial institutions of the United States.
The Federal Reserves of the United States has recently confirmed the launch of their instant payment system which is considered as the alternative for the central bank digi currencies and cryptocurrencies. This instant payment methods will help to complete payments in mere seconds and it can also support the transactions between the merchants, customers and the banks. The best part is FedNow will not be relying upon the blockchain tech for these payments. It is an crucial step for the federal government as it is controlled by the reserves.
As per a 15th March announcement, the US Fed said that the launch of FedNow will happen on the first week of April when they are preparing for the launch. This announcement red that the first few adopters of the service will do a customer certification program after testing the information. The FedNow pilot program will develop this from the feedbacks following the launch to send live transactions through the system.
The FedNow Will Launch In July
FedNow has been announced since 2019 and it will provide optimized real-time gross settlement round-the-clock. It will funnel the commercial bank money from senders through the Fed credit accounts to their recipients. It will include features like fraud risk management as well.
Following this official launch, the Federal Reserve has outlined that it is going to push to onboard as plenty of financial institutions to increase the availability of the services. Some people are seeing it as to tackle the problems that CBDCs and stablecoins were meant to solve.