The Federal Reserve, the Federal Reserve, announced today that the instant payment service FedNow has started operations. According to the FED’s announcement, 35 different banks have already activated the payment instrument.
Fed Chairman Jerome Powell spoke to the press after the long-awaited FedNow project came to life. Powell underlined that payments in daily life will be much easier thanks to the new FedNow service. The following statements about the FedNow project on the website of the US Federal Reserve draw attention:
“When more banks choose to use this new service, individuals and small businesses will be able to perform cash transactions in a much more advantageous way. Thanks to FedNow, salaried employees will have access to cash just as they receive their checks.”
Central Banks Seeking Alternatives to Crypto
Blockchain and cryptocurrency technology is being used by more and more people because of its cheap, fast, agentless and secure conditions. For this reason, central banks in many parts of the world are working on alternative services or digital money (CBDC) to cryptocurrencies to meet the demand of citizens.
Some of the crypto lovers perceive this move of the FED as a preliminary step for the CBDC.
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