Now the citizens in the US can officially use FEDnow Instant payment services. In response, people are saying that the country doesn’t need CBDC or blockchain-powered payment solutions.
FedNow is a new technology-based digital payment system, which was already planned to launch in July of this year.
On 20 July 2023, The US Federal Reserve (Fed) opened the FedNow payment service for citizens & Banks to use. In this early phase, 35 banks and credit unions are participating. The popular names in the early phase participants are JPMorgan Chase and Wells Fargo.
The US Fed also said that FedNow will offer just-in-time access to paychecks and invoices. In short, the Fed aimed to make this latest digital payment service faster as much as possible.
Reports noted that the majority of the early phase users said that they are finding it a very smooth payment system because traditional payment systems were not better, as they take a huge time to complete the transactions but here the whole thing is near to instant.
Fed chairman Jeremy Powell said that the central bank aimed to make FedNow better over time, so that people can use this new payment tool in daily life in more convenient ways.
Few experts noted that the US Fed challenges the crypto payment services & also the need of CBDCs with the FedNow payment system because it is faster & better in several ways.
In the recent month, the Fed faced huge criticism, when people claimed that FedNow will allow the integration of CBDC services together but later Fed officially confirmed that they have no plans for CBDC integration.
Cardano founder Charles Hoskinson also shared his response and noted that FedNow is getting huge traction among Americans.
Now it will be interesting to see whether America will speed up its efforts to boost its study & development for CBDC, or say Digital dollar, or not.