The announcement came today from the Federal Reserve that FedNow, their instant payment service, has begun its operations . As per the FED’s statement 35 different banks have already activated this payment system.
Following the launch of the long-awaited FedNow Project , Chairman Jerome Powell addressed the press and emphasized how this new service will greatly simplify everyday payments . Noteworthy statements regarding the FedNow project can be found on the official website of the US Federal Reserve :
“With more banks opting to utilize this innovative service, individuals and small businesses will have a much more convenient way to conduct cash transactions . Thanks to FedNow salaried employees will now have immediate access to funds once they receive their paychecks.”
Central Banks Seeking Alternatives to Crypto
Due to its affordability , speed, decentralization, and security, an increasing number of individuals are embracing blockchain and cryptocurrency technology . Consequently central banks worldwide are exploring alternative services or digital currencies (CBDC) in response to the growing demand from citizens .
Certain cryptocurrency enthusiasts interpret this action by the Federal Reserve as a potential precursor towards implementing a CBDC .