The Federal Reserve introduces the immediate payment system Fednow

• The newly introduced Fednow service aims to strengthen banks and credit cooperatives.
• fednow enables the execution of transactions around the clock 365 days a year.
• 35 banks and credit cooperatives, including the U Bureau of the Fiscal Service of the US Ministry of Finance, are already equipped for the processing of payments via the FedNow service.

The FedNow® Service, the immediate payment platform of the Federal Reserve, went live officially on Thursday morning. The service enables banks and credit cooperatives of all size to process the transactions of their customers immediately.

The Federal Reserve claims that Fednow transactions can be carried out around the clock every day of the year.

First of all, 35 banks and credit cooperatives as well as the Bureau of the Fiscal Service of the US Ministry of Finance are ready to handle payments via the Fednow service. In addition, a group of 16 service providers is available to support banks and credit cooperatives in payment processing.

prudent payments for private individuals and companies via Fednow

The chairman of the US Federal Reserve, Jerome Powell, explained the advantages of the immediate payment system as follows:

"The Federal Reserve has developed the FedNow service to make everyday payments faster and more convenient in the coming years. If more and more banks decide over time to use this new tool, individuals and companies will benefit that a person can immediately receive a salary check or that a company can access funds immediately if an invoice is paid." However,

Jerome Powell made it clear that the newly introduced system does not try to replace Fiat money. He said that Fednow "has nothing to do with a digital currency". He added: "As with other payment services of the Federal Reserve, like Fedwire and Fedach." The Fednow service is neither a currency nor a step to abolish any form of payment, including cash. ”