While it had already announced a launch date for FedNow last year, the US central bank returned to the topic this Wednesday (15) as US banks go through a crisis.
The official announcement indicates that the launch of FedNow, a technology similar to the Brazilian PIX, will be launched in July this year.
The date is the same as indicated in the schedule published last year. Reinforcing their arrival, however, could be a government tactic to calm the bank runs that are driving US banks, both large and small, to the brink of collapse.
FedNow will be launched in July, confirms the US Federal Reserve
While several Bitcoin proponents mocked the closure of banks last weekend as their customers attempted to withdraw their savings, the launch of FedNow promises to solve this problem by operating “every day of the year.”
“We are extremely excited about the launch of FedNow, which will enable all participating financial institutions, from the smallest to the largest and from all corners of the country, to offer a modern instant payment solution”said Ken Montgomery of the Fed. “As the launch approaches, we are urging financial institutions and industry partners to prepare to join the FedNow service as soon as possible.”
FedNow will enter its final testing phase in June and be fully operational in July, according to the announcement from the US Federal Reserve.
Finally, the text also mentions some keywords such as safety, resilience, innovation and accessibility. In other words, the US is finally modernizing its banking system.
FedNow paves the way for the US CBDC, the “digital dollar”
With the arrival of FedNow this year, many believe the next step for the US is the creation of the digital dollar. However, it is hard to believe that this will happen soon.
A study published in early 2022 shows that the Fed would be concerned about the impact of a CBDC. After all, many would take their money from the banks and keep it with the US Central Bank itself, exacerbating the banking crisis the country is going through.
Either way, cryptocurrencies appear to be pressuring governments to modernize their financial systems. However, this seems to be only the tip of the iceberg, as the main problem remains the inflation of national currencies.
Source: Live Coins
Barry Siefert is an accomplished journalist and author at The Nation View. He is known for his expertise in the field of cryptocurrency, and has written extensively on the topic. With a background in finance and economics, Barry has a deep understanding of the underlying technology and market forces that drive the crypto industry.
