Fed Announces Launch of ‘FedNow’ Real-Time Payment System, Sparking Debate
The Federal Reserve has announced a timeline for the launch of its long-awaited FedNow payment service that will let banks offer customers instantly available funds and execute real-time payments, with critics flagging concerns like lack of cross-border payment processing and raising questions about surveillance.
The Fed announced on Wednesday that it will begin formal certification of participants in the FedNow system in April in anticipation of a July launch.
First announced in 2019, FedNow will allow banks to instantly transfer payments across the financial system.
“With the launch drawing near, we urge financial institutions and their industry partners to move full steam ahead with preparations to join the FedNow Service,” Ken Montgomery, first vice president of the Federal Reserve Bank of Boston and FedNow program executive, said in a statement….