FedNow or Never!

FedNow is a new instant payment service being developed by the Federal Reserve.

It is the first U.S. government-created and -backed portal allowing banks to send and receive funds almost instantly.

The Fed already has a payments portal, but it doesn’t operate in real-time, unlike Venmo, Cash App, and other money transfer apps that allow users to instantly send money between app accounts.

Some of the pros of the FedNow app include:

• Increased flexibility and faster transactions.
• Instant payments between bank accounts.
• The ability to make payments, such as on your mortgage, ideally within seconds.
• Business owners will be able to send and receive invoice payments in real-time online.

However, there are also some concerns and confusion about what FedNow will actually do.

Some critics have speculated that FedNow will create a digital currency, but the Fed has tried to dispel this assumption by flatly saying, “FedNow is not related to a digital currency”which is suspect in my opinion.

There have also been claims on social media that FedNow will replace the dollar with a new digital currency.

Overall, FedNow is a new service that aims to provide faster and more convenient payment options for consumers and businesses.

However, like any new technology, there may be some concerns and confusion about its impact and potential drawbacks.

It’s important to stay informed and make decisions based on accurate information. 😊

(1) FedNow FAQs: What Is It Really? – Forbes Advisor. https://www.forbes.com/advisor/personal-finance/fednow-faqs/.
(2) Forget the Gossip: Here’s the Truth About FedNow – The Motley Fool. https://www.fool.com/the-ascent/banks/articles/forget-the-gossip-heres-the-truth-about-fednow/.
(3) EXPLAINED: How the Fed’s FedNow program WILL end in a CBDC. https://www.glennbeck.com/radio/fednow-program-cbdc.
(4) How to Pay Your Taxes: 10 Ways to Make an Tax Payment in 2023. https://www.nerdwallet.com/article/taxes/pay-irs-options.