The Fed has announced that it will launch its instant payment service, called FedNow, between May and July 2023.
The instant payment service is seen as one of the steps towards the rollout of a CBDC.
Fed Launches FedNow Service
The Fed is preparing to launch its new payment platform between May and July of 2023.
According to the press release, FedNow will be open to all financial institutions. Consumers and businesses will have the opportunity to make instant payments through this platform. The Fed’s new platform is currently in a pilot phase involving 120 organizations, including US Bank and payment processor Alacriti Payments.
First announced in August 2019 by then-Fed Chairman Lael Brainard, the service is in talks as a phase for the CBDC. FedNow Service program manager Ken Montgomery said in a statement:
“The benefits of instant payments are becoming more important to consumers and businesses alike. This service will be of critical importance for financial institutions to remain competitive.”
