FedNow Goes Live! Centralized Cryptocurrency

[Nbadan]

History was made and not a peep on Spurstalk?

......i don't think so....


Federal Reserve launches FedNow instant payment service that could bypass Venmo and PayPal
Source: NBC News


The U.S. Federal Reserve has launched a long-awaited service which will aim to modernize the country’s payment system by eventually allowing everyday Americans to send and receive funds in seconds, 24 hours a day, seven days a week, the central bank announced on Thursday.

The “FedNow” service, which has been in the works since 2019, will seek to eliminate the several-day lag it commonly takes cash transfers to settle, bringing the U.S. in line with countries including the United Kingdom, India, Brazil, as well as the European Union, where similar services have existed for years.

FedNow is launching with 41 banks and 15 service providers certified to use the service, including community banks and large lenders like JPMorgan Chase, Bank of New York Mellon, and US Bancorp, but the Fed plans to onboard more banks and credit unions this year. The Fed said on Thursday in a statement that 35 banks and credit unions were currently utilizing the service, as well as the Treasury Department’s Bureau of Fiscal Service.

The service will compete with private sector real-time payments systems, including The Clearing House’s RTP network, and was initially opposed by big banks who said it was redundant. But many have since agreed to participate on the basis FedNow will allow them to expand the services they can offer clients.

Read more: https://www.nbcnews.com/business/consumer/federal-reserve-launches-fednow-instant-payment-service-bypass-venmo-p-rcna95380

let the games begin!

[FuzzyLumpkins]

History was made and not a peep on Spurstalk?

......i don't think so....


Federal Reserve launches FedNow instant payment service that could bypass Venmo and PayPal
Source: NBC News


Read more: https://www.nbcnews.com/business/consumer/federal-reserve-launches-fednow-instant-payment-service-bypass-venmo-p-rcna95380

let the games begin!

State generated currency formats are by definition not cryptocurrency. This is just as much of a problem if not more for established banks who are the entities actually handling most financial transactions.

[Nbadan]

State generated currency formats are by definition not cryptocurrency. This is just as much of a problem if not more for established banks who are the entities actually handling most financial transactions.

.....maybe not.....but sure smells like a crypto

it's going to have to better than ripple, or ADA...cardano or any of the other crytos like Stellar that do transactions more securely and cheaper.....

how do you suppose they will do that?

[FuzzyLumpkins]

.....maybe not.....but sure smells like a crypto

seems like venmo and paypal which they are mostly modeled on. Those are not crypto either.

[Nbadan]

seems like venmo and paypal which they are mostly modeled on. Those are not crypto either.

....but those services backup their transfers...not so on the FEDNOW system

transfers...fraudulent or not, are permanent

like crypto

[FuzzyLumpkins]

....but those services backup their transfers...not so on the FEDNOW system

transfers...fraudulent or not, are permanent

like crypto

that is not what makes a cryptocurrency. a cryptocurrency is a digital currency from a decentralized source that uses cryptography to secure transactions.

the finality of a transaction is irrelevant. you are handwaving at how hash algorithms work in blockchain, and missing the point. the feds do not act as an intermediary like venmo/paypal. They are not the same mechanism.

[Nbadan]

that is not what makes a cryptocurrency. a cryptocurrency is a digital currency from a decentralized source that uses cryptography to secure transactions.

The Fed has made it no secret that it is perusing a CBDC. You think the Fed gonna be happy once ADA or XRP do these transactions with proof of stake, or more secure and with assurances Fednow ,or it future version of CBDC, can provide?

.......its starting to make sense why the SEC targeted Ripple and why in in latest filings it also labeled Cardano as a security

[FuzzyLumpkins]

The Fed has made it no secret that it is perusing a CBDC. You think the Fed gonna be happy once ADA or XRP do these transactions with proof of stake, or more secure and with assurances Fednow ,or it future version of CBDC, can provide.

now you've switched the subject.

this is not CBDC either so who cares? I should've known this was at core a conspiratard take.

[Nbadan]

now you've switched the subject.

this is not CBDC either so who cares? I should've known this was at core a conspiratard take.

So the Federal Government decided to put in an instant pay system....that's your take?

[FuzzyLumpkins]

So the Federal Government decided to put in an instant pay system....that's your take?

They did put one in.

Everything is a conspiracy to you. I have no interest in entertaining this one too.

[Nbadan]

They did put one in.

Everything is a conspiracy to you. I have no interest in entertaining this one too.

You have never proven me wrong and that gets to you. Makes me happy

you have become pompous. Lazy

[FuzzyLumpkins]

You have never proven me wrong and that gets to you. Makes me happy

and now we have megalomania. shocking.

[Nbadan]

and now we have megalomania. shocking.

Facts are facts

[spurraider21]

This isn’t cryptocurrency

[Ef-man]

Financial institutions are involved but no mention of related fees which I am sure exist as banks are vampires.


https://youtu.be/le8Me8AfK8k

[Nbadan]

This isn’t cryptocurrency

it's a hook.....the only way for Fednow to compete with ripple, cardano or stellar is to eventually become a cryptocurrency to keep transaction speeds fast, secure and cost effective.....the government could care less about helping the little guy by taking bank profits and creating a instant pay system

[Nbadan]

Financial institutions are involved but no mention of related fees which I am sure exist as banks are vampires.


https://youtu.be/le8Me8AfK8k

I am sure there will be tranactions fees but they will be much lower than the fees you currently pay now...that and instant pay days are the hook.....

[spurraider21]

it's a hook.....the only way for Fednow to compete with ripple, cardano or stellar is to eventually become a cryptocurrency to keep transaction speeds fast, secure and cost effective.....the government could care less about helping the little guy by taking bank profits and creating a instant pay system
Nope. There’s no need for it to become crypto

[FuzzyLumpkins]

The fed says that they will not implement a state run digital currency unless there is a bill specifically telling them to.


The Federal Reserve issued Money and Payments: The U.S. Dollar in the Age of Digital Transformation as a first step in fostering a broad and transparent public dialogue about CBDCs in general, and about the potential benefits and risks of a U.S. CBDC. The paper is not intended to advance any specific policy outcome and no decisions have been made at this time. The Federal Reserve has made no decision on issuing a central bank digital currency (CBDC) and would only proceed with the issuance of a CBDC with an authorizing law. Testifying before the House Financial Services Committee in March 2023, Chair Powell said a central bank digital currency is, “something we would certainly need Congressional approval for.”

https://www.federalreserve.gov/cbdc-faqs.htm

Let me know when the bill is passed. Unfortunately at that point it won't be a conspiracy but at least it would make sense.

[Nbadan]

The fed says that they will not implement a state run digital currency unless there is a bill specifically telling them to.

So.....you trust the fed now?

[Nbadan]

Nope. There’s no need for it to become crypto

really? so the fed is just gonna let those fees go? I have no problem with the fed collecting fees but the fees for crypto will be much cheaper than what the Fed plans to charge using the Fednow system...i believe it is set at 0.045 a transaction....well above the cost per transaction for ripple, cardano or stelllar

[FuzzyLumpkins]

So.....you trust the fed now?

Not so much the fed but how the courts and legislature work in reference to the fed and understanding how a conspiracy at that level would have to work.

I get that you want a simple explanation for why society works as it does. Most who go that route go with magic sky man. You go with conspiracies.

[spurraider21]

really? so the fed is just gonna let those fees go? I have no problem with the fed collecting fees but the fees for crypto will be much cheaper than what the Fed plans to charge using the Fednow system...i believe it is set at 0.045 a transaction....well above the cost per transaction for ripple, cardano or stelllar
Who is letting everything go? They are charging the banks per transaction. Where does the need for crypto come in?

[RandomGuy]

LOL cryptobros gonna prove that nine lebbin was an inside job because building sebin.

[Winehole23]

Sounds like the Fed is normalizing to other banks, now they have a more instantaneous procedure.

[Thread]

It's aged poor Damon like 50 years & 50lbs.

[Nbadan]

It's only a matter of time before every bank starts using FEDNOW, it cheaper, its faster, but like Crypto, it does not offer the same like of protections like Paypal.. Once you sent the money with FEDNow, there is no oppsieee....some banks are now forcing customers to convert their accounts without much option

[Nbadan]

So while they are advertising the FedNow program as a new system that will make payments and wire transfers much quicker and much more convenient, it is also a mass data collection system for the Fed to begin storing private bank information.

Will this include all the personal details of account holders in private banks?

Yes, apparently it does, based on “Operating Circular 1 (OC 1)“, a document on the Federal Reserve website under “Rules and Regulations Resources.”

In that document, Section 6.0 deals with “FEDERAL RESERVE BANK RESPONSE PROGRAM FOR UNAUTHORIZED ACCESS TO SENSITIVE CONSUMER INFORMATION OBTAINED IN THE COURSE OF PROVIDING FINANCIAL SERVICES.”

Section 6.1, “THE RESERVE BANK’S POSSESSION AND USE OF CONSUMER INFORMATION” states:

The Reserve Banks do not hold accounts for individuals and do not provide Reserve Bank services to individuals. In the course of providing Financial Services to Depository Institutions and other authorized users of Reserve Bank services, the Reserve Banks obtain, store, and transmit information that includes Sensitive Consumer Information.

Under the general supervision of the Board of Governors, the Reserve Banks have implemented information security measures designed to protect the security and confidentiality of nonpublic personal information obtained by them, to protect against any anticipated threats or hazards to the security or integrity of such information, and to protect against unauthorized access to or use or reuse of such information that could result in substantial harm or inconvenience to a Depository Institution’s customer.

In other words, the Fed needs all of your “Sensitive” information to protect you from hackers.

What is that “Sensitive Consumer Information”?

Section 6.2 defines that:

Sensitive Consumer Information means a consumer’s name, address or telephone number, in conjunction with the consumer’s social security number, driver’s license number, account number, credit or debit card number, or a personal identification number or password that would permit access to the consumer’s account, if the Reserve Bank or any other party that holds Sensitive Consumer Information as an agent of the Reserve Bank obtains such information in the course of providing Financial Services. (Source.)

How convenient. So when they are ready to roll out CBDCs and establish an account for you, they will already know everything about you and be able to open an account for you at the Federal Reserve, even if you choose not to participate, if your bank was already participating in the FedNow program.

This will save months, if not years, in trying to collect this data in order to implement CBDCs.

It still remains to be seen how many financial institutions decide to participate in FedNow, since it is voluntary. The U.S. Treasury is already part of the program, so if someone wants their tax returns instantaneously, the FedNow service will be very attractive.

Visa and Mastercard are also already part of FedNow. Banks will undoubtedly be pressured to participate for fear of being left out of the advantages of “Instant Payments.”

This appears to be the beginning of the end for “private banking” in the U.S., no fooling.