The “FedNow” fast payment system will debut in July 2023, according to a statement from the US Federal Reserve.
According to the announcement, the Federal Reserve will formally certify participants for the service’s launch during the first week of April.
“Many early adopters have declared their intent to begin using the service in July, including a diverse mix of financial institutions of all sizes, the largest processors, and the U.S. Treasury,” the Federal Reserve noted.
Financial institutions that take part in the FedNow Service enable businesses and individuals to make and receive rapid payments.
The money will be instantly available to recipients. Access to the service will be provided through the FedLine network of the Federal Reserve.
The Federal Reserve said that it will strive to sign up as many financial institutions as required in order to increase the range of instantaneous payments available. The FedNow service seeks to eliminate the U.S. banking sector’s disparity in payment processing times.
Early adopters will complete a customer testing and certification phase, which will be influenced by input from the FedNow Pilot Program, in order to be ready to transmit actual transactions over the FedNow Service.
Activities for production validation will be carried out in June by the Federal Reserve and accredited partners to make sure that the launch in July will go smoothly. No blockchain technology is used by the service.
Value-added features, core clearing features, and settlement features will all be available when the FedNow Service launches. There will be new features and enhancements in upcoming upgrades to the service.
Since the Federal Reserve was in charge of offering quick payment services, U.S. cryptocurrency companies are in a difficult situation as crypto-friendly banks are failing one by one. The recent suspension of cryptocurrency network payments by Silvergate Bank resulted in a decline in its stock price.
Compiled by Coinbold