The US Federal Reserve Board has announced that it plans to launch a faster, real-time payments system called FedNow by 2023/24 in a press release published on 5th August.
It says that the Board of Governors of the Federal Reserve System has requested that Federal Reserve Banks develop a new interbank real-time settlement service to support faster payments. It aims to modernise the entire system so that it supports the transfer funds around the clock and on weekends and weekdays for both businesses and the public.
Federal Reserve Board Governor Lael Brainard said: “Everyone deserves the same ability to make and receive payments immediately and securely, and every bank deserves the same opportunity to offer that service to its community. FedNow will permit banks of every size in every community across the country to provide real-time payments to their customers.”
Crypto community reacts
However, many in the crypto community were unimpressed by the plan. Anthony Pompliano — co-founder of crypto asset management firm Morgan Creek Digital Assets tweeted “Bitcoin’s already available.”
And Gabor Gurbacs, director of digital assets strategy at MV Index Solutions posted, “Great that the @federalreserve is taking a forward looking and intelligent stance regarding innovation in #DigitalAssets and #payments. I recommend considering the benefits of #Bitcoin, a functioning, reliable, trust-minimized base-layer for sound money.”
On the other hand, Ripple Labs stands to benefit as it has been elected to the Federal Reserve’s Faster Payments Task Force Steering Committee. Some commentators at Cointelegraph are saying that Ripple XRP facilitates all the needs of the task force, so it’s unsurprising that Ripple Labs is involved.
However, let’s face it, an awful lot could happen before 2023!