https://www.coffeeandcovid.com/p/now-fed-friday-july-21-2023-c-and
Florida lawyer Jeff Childers has a great column today.
He explains what FEDNOW is, and why it was rolled out now.
It is an interbank payment transfer system (think clearing checks) and replaces the ACH system used for decades.Payment between banks will be instantaneous instead of taking days.
The new BRICS currency will have this feature, so the Fed needed it to compete with them.
It is not the Fed’s proposed digital currency.
That is still yet to come.
Thanks for that info.
Thanks for this post....
With all that is being thrown at us daily, all doom and gloom, it’s no wonder we are prone to think the worst scenario.
This explains a lot.
Thanks exit.
“As you know, the “BRICS” coalition (Brazil, Russia, India, China, and South Africa) has been working on a new global currency to compete with the dollar — along with a competitive payments transfer system. What do you want to bet the new and improved BRICS payment transfer system is instantaneous, and doesn’t take up to three days to clear transactions like our system does?
In other words, our creaky, fifty-year-old payment processing technology was a MAJOR weakness in the upcoming battle of the currencies. It HAD to be fixed. Other countries might choose to go with BRICS just because it clears payments faster and more conveniently. At scale, instantaneous transfers shifts a significant amount of interest from banks back to customers. It’s just basic economics.
Using the BRICS currency would be cheaper and easier. Not to mention more convenient.”
I figured BRICS had something to do with it, but nothing quite that simple.