This was reveal in a press release published on Aug. 5, which Board of Governors of the Federal Reserve System has requested that Federal Reserve Banks develop a new inter-bank uninterrupted real-time settlement service to support faster payments in the U.S. The payment system is called FedNow and will purportedly launch in 2023 or 2024.
The FedNow will be a modern payment system with "almost instant" transaction in a real-time round-the-clock including weekdays and workdays. The system is said, will be available for both business people and the general public.
Fed believes that the system will help consumers to more flexibly manage their fund and make time-sensitive payments and is requesting comment on the possible design and functionality of the new service.
Commenting on the issue, 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."
The plan has called the attention of some cryptocurrency investors and enthusiast who did not applaud the idea of FedNow. Notably, Anthony Pompliano — co-founder of crypto asset management firm Morgan, Creek Digital Assets tweeted, “Bitcoin is already available.”
Others like Gabor Gurbacs, director of digital assets strategy at MV Index Solutions, a subsidiary of investment management firm VanEck, tweeted:
“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.”
Other crypto-related companies are positioned to make a contribution to the project. In June, Ripple Labs was elected to the Federal Reserve’s Faster Payments Task Force Steering Committee. The initiative intends to build “fast, safe and ubiquitous payments network in the U.S.”
Last week, the Federal Reserve cut interest rates, this some experts say could be partially responsible for Bitcoin’s (BTC) recent price rally. Fundstrat Global Advisors co-founder Tom Lee said:
“Bitcoin’s becoming increasingly a macrohedge for investors against things that could go wrong. Rate cuts are adding liquidity. Liquidity is pushing money into all these risk assets and also hedges, which is helping Bitcoin.”