What is FedNow?
Here is my take on it from my reading. I will quote and source after my take. And a lot of what you read and believe depends on how paranoid you are about government intentions.
Fednow to me, appears, to be a system of peer to peer money transfer that is near instant, and immutable. Like Hive is.
Except that the peer to peer are the banks, credit unions and such.
It is not money, it is not a blockchain, it is not a coin or token. It is a service to speed up transactions.
I know we have come along way, but now and then we still receive checks that a bank will hold until verified.
We pay our bills on our bank app. And if you want it to be paid by the due date you usually have to pay a few business days early
.
That is a couple examples. With FedNow that is supposed to be gone. Near instant and immutable.
FedNow
Source. Right from the horses mouth as the saying goes.
“When fully available, instant payments will provide substantial benefits for consumers and businesses, such as when rapid access to funds is useful, or when just-in-time payments help manage cash flows in bank accounts. For example, individuals can instantly receive their paychecks and use them the same day, and small businesses can more efficiently manage cash flows without processing delays. Over the coming years, customers of banks and credit unions that sign up for the service should be able to use their financial institution’s mobile app, website, and other interfaces to send instant payments quickly and securely.”
Will FedNow Dominate the Global Payments System?
If you read the quote below you will understand how Hive is already so far ahead of what FedNow is doing. The great thing is, by the time they get to our level we will have them out passed.
The only thing we new, and with HBD is the network effect to go into overdrive. Hive is already global, instant, and immutable.
If we want to get rid off the middle men, banks, we have to make sure we stay ahead and get the network effect into full swing.
“Will FedNow Dominate the Global Payments System?
Not any time soon. While FedNow will have a significant impact on the global payments system of money transfers among bank accounts throughout the world, it will take years for the platform to be fully tested and adopted by financial institutions.
The Fed’s participating institutions must first opt in, begin testing out FedNow and then adjust their own systems to fully adopt it.
Some banks are likely to want to stand by to see how adoption pans out for the early adopters. This means might not see any immediate change in how you send and receive money in the coming months until the system is fully implemented across banks.
“Over time, as more banks choose to use this new tool, the benefits to individuals and businesses will include enabling a person to immediately receive a paycheck, or a company to instantly access funds when an invoice is paid,” said Fed Chair Jerome Powell in the launch announcement on July 20.”
NOISE
I believe all the noise, fear mongering, videos, blogs, have been to get readers.
Maybe I am naïve, but I don’t think FedNow will have any effect on Crypto let alone Hive.
It may even help. Once people understand the value of instant and immutable.
Bradley