Topic: FedNow - Instant payment service developed by the Federal Reserve (Read 135 times)
July 28, 2023, 06:13:27 AM
This new service launched on July 20, 2023. FedNow is an instant payment service developed by the Federal Reserve for depository institutions in the United States, which allows individuals and businesses to send and receive money.
I think this discussion has been recently discussed already but I can't just make the research in finding out when, bitcoin is not what we can compare with the Fed newly introduced payment system or gateway, we are talking about cryptocurrency here and bitcoin is the major consideration and not centralized authority developed system of making payments, they have tried CBDC isn't not working, fiat can't go along the same role bitcoin perform because they can never paths crossed together, maybe the government wanted to use this as an additional means to engaged bitcoiners and general public distracted from bitcoin which will obviously not work out as they planned.
July 28, 2023, 05:41:09 AM
Why people always see threats, enemies but I see bank transfers, CBDC transfer, Bitcoin transactions will be used in a society. Bitcoin is not a threat for fiat currencies, CBDCs or bank system. Banks, CBDCs are not threats of Bitcoin.
When they see others as threats, enemies, they will have bad responses with each other.
They try to link all the events that might happen to the regulatory restrictions as they fear that Bitcoin will be a competitor to CBDCs which is a misconception of many traders.
July 28, 2023, 05:25:11 AM
Maybe things are different in US but banks have always offered "instant money transfer" from one account to another as far as I had a bank account. So this doesn't seem to be a new thing not to mention that this is super centralized which means it is not even on-topic to talk about it in a bitcoin forum let alone be a threat to bitcoin 
P.S. Lets not forget about the reversibility of such "instant transfers" in the centralized world.
Do they actually transfer any money from one bank account to another account in a same bank system and external bank system?P.S. Lets not forget about the reversibility of such "instant transfers" in the centralized world.
What they transfer is a number which has no value. Surely they can do it instantly but if their bank collapses, the number of money we have in a bank account has no value and becomes useless.
CBDCs are not a threat to Bitcoin because it still has the same characteristics as cash, which is peer-to-peer payment, but in a digital form with complete centralization, the possibility of knowing your balance, the possibility of freezing your funds and a lot of things that may make a pass to become an alternative to cash very difficult in democratic countries. if there is success in launching such currencies, there will be a logical reason for using Bitcoin, but I do not expect that to happen during the next few years.
Agree with you.Why people always see threats, enemies but I see bank transfers, CBDC transfer, Bitcoin transactions will be used in a society. Bitcoin is not a threat for fiat currencies, CBDCs or bank system. Banks, CBDCs are not threats of Bitcoin.
When they see others as threats, enemies, they will have bad responses with each other.
July 28, 2023, 04:04:45 AM
I think this is something that are worthy of a discussion and I want to know if you see this as a threat or real competition to Bitcoin and other Crypto currencies?
If I understand correctly, this is just a payment service while Bitcoin is not a payment service.
People are investing in Bitcoin, while they can only use this one if they want instant payment, which means it will only be a threat to other payment services and not Bitcoin.
CBDCs are not a threat to Bitcoin because it still has the same characteristics as cash, which is peer-to-peer payment, but in a digital form with complete centralization, the possibility of knowing your balance, the possibility of freezing your funds and a lot of things that may make a pass to become an alternative to cash very difficult in democratic countries. if there is success in launching such currencies, there will be a logical reason for using Bitcoin, but I do not expect that to happen during the next few years.
So I saw this and I see nobody talking about it, so I reckon people either do not know about it or it is not seen as a potential threat to Bitcoin. (Yes, I know it is focused only at the US, but I reckon it will branch out to the rest of the world soon.. or they will link to it)
Maybe things are different in US but banks have always offered "instant money transfer" from one account to another as far as I had a bank account. So this doesn't seem to be a new thing not to mention that this is super centralized which means it is not even on-topic to talk about it in a bitcoin forum let alone be a threat to bitcoin P.S. Lets not forget about the reversibility of such "instant transfers" in the centralized world.
I think this is something that are worthy of a discussion and I want to know if you see this as a threat or real competition to Bitcoin and other Crypto currencies?
It can't be a threat to BTC when it doesn't solve any of the problems that BTC solves. FedNow is an instant payment system, BTC transactions are confirmed ~ 10 minutes on average, BTC is a currency, FedNow is a payment service, FedNow is a threat to other payment services like Cash App, Paypal, Venmo, etc and not BTC.FedNow is not a bad service for Americans that want to use an instant payment service, and it is not in competition with BTC because they have different use cases, BTC is for people that want a decentralized currency that is permissionless and censorship resistant, it isn't for people who want to make payments instantly.
I think this is something that are worthy of a discussion and I want to know if you see this as a threat or real competition to Bitcoin and other Crypto currencies?
This news is not new, and I think everyone knows about it and people don't care about it because it is still a centralized system run by the government. So it cannot compete with or harm bitcoin. For me, only if there is a completely decentralized and safer system, faster than bitcoin, that's when bitcoin lovers like us need to worry. Also, no matter how many new payment and currency systems are created but still under government control, a centralized system, they are not comparable to bitcoin.
its not a currency, its a payment system of swapping reserved(locked) account balance
for want of a better example its just hub and spoke model of LN channels
its not even a blockchain. nor anew currency. is just a new messaging system using cryptography to confirm sender/destination messages of payment movements
FED now only works between commercial banks and the fed. where the FED is the hub holding the locked value and giving the commercial banks inbound balance.. commercial bank customers do not have reserved balance in the fed.. in short commercial bank customers are not locked into the fed. they are in a completely different channel/payment system
..
customers of commercial banks make requests to their commercial bank to use the commercial banks corporate reserves with the fed, much like how LN borrows/uses middle men routed channel balance. where the fed then does the same in reverse with another commercial bank.. and another commercial bank then does the same with the destined recipient customer. once both side have sent the correct messages between each other the reserves at the fed are settled in which commercial bank is given which balance. and then the sender commercial bank on separate normal banking system debits its customers balance of that amount. and the recipient commercial bank credits its customers recipient account, completing the session
for want of a better example its just hub and spoke model of LN channels
its not even a blockchain. nor anew currency. is just a new messaging system using cryptography to confirm sender/destination messages of payment movements
FED now only works between commercial banks and the fed. where the FED is the hub holding the locked value and giving the commercial banks inbound balance.. commercial bank customers do not have reserved balance in the fed.. in short commercial bank customers are not locked into the fed. they are in a completely different channel/payment system
..
customers of commercial banks make requests to their commercial bank to use the commercial banks corporate reserves with the fed, much like how LN borrows/uses middle men routed channel balance. where the fed then does the same in reverse with another commercial bank.. and another commercial bank then does the same with the destined recipient customer. once both side have sent the correct messages between each other the reserves at the fed are settled in which commercial bank is given which balance. and then the sender commercial bank on separate normal banking system debits its customers balance of that amount. and the recipient commercial bank credits its customers recipient account, completing the session
It also seeks to remove middlemen in the banking system, imitating the decentralization feature of Bitcoin.
Is it? Because I found if they want to opt out the instant app feature then they need to in Fed network which makes it as a middle man like one for all just eliminated the bank but its not sustainable and sine you mentioned that it is already implemented even in countries like India where the operation cost is higher and customers are forced to pay lot of hidden charges which many of them don't like.
Quote
FedNow is expected to be more widely available and easier to use than the RTP network and allow participating financial institutions to send and receive payments with each other directly, eliminating the need for intermediaries such as the clearinghouse.
https://laporte.com/knowledgecenter/financial-services/financial-services-update-fednow-banking-results-reinsurance-disruption
It also seeks to remove middlemen in the banking system, imitating the decentralization feature of Bitcoin.
Is it? Because I found if they want to opt out the instant app feature then they need to in Fed network which makes it as a middle man like one for all just eliminated the bank but its not sustainable and sine you mentioned that it is already implemented even in countries like India where the operation cost is higher and customers are forced to pay lot of hidden charges which many of them don't like.
So. IMO it is not even close to be considered as a potential threat to bitcoin cause imagining the FedNow instant to kick in different parts of world it would take huge infrastructure as well as few decades.
It is a copycat or an imitation of the Bitcoin payment system. The peer-to-peer system is been replaced with account-to-account (A2A) transactions. It also seeks to remove middlemen in the banking system, imitating the decentralization feature of Bitcoin. But I don't see it as a threat to Bitcoin because it is nothing but a fiat payment system. It is not even a blockchain technology and is highly centralized. The only difference is that transaction time will be faster than normal and It also promises to be effective at all times throughout the year.
The US is not the first country to adopt this payment system as it has been available in some European nations, Canada, and even India and it has not limited Bitcoin growth in these nations. People that place importance on their privacy and freedom will always choose the original payment system.
The US is not the first country to adopt this payment system as it has been available in some European nations, Canada, and even India and it has not limited Bitcoin growth in these nations. People that place importance on their privacy and freedom will always choose the original payment system.
This new service launched on July 20, 2023. FedNow is an instant payment service developed by the Federal Reserve for depository institutions in the United States, which allows individuals and businesses to send and receive money.
So I saw this and I see nobody talking about it, so I reckon people either do not know about it or it is not seen as a potential threat to Bitcoin. (Yes, I know it is focused only at the US, but I reckon it will branch out to the rest of the world soon.. or they will link to it)
Source : https://en.wikipedia.org/wiki/FedNow
I think this is something that are worthy of a discussion and I want to know if you see this as a threat or real competition to Bitcoin and other Crypto currencies?
More Info : https://www.forbes.com/advisor/personal-finance/fednow-faqs/
So I saw this and I see nobody talking about it, so I reckon people either do not know about it or it is not seen as a potential threat to Bitcoin. (Yes, I know it is focused only at the US, but I reckon it will branch out to the rest of the world soon.. or they will link to it)
Source : https://en.wikipedia.org/wiki/FedNow
I think this is something that are worthy of a discussion and I want to know if you see this as a threat or real competition to Bitcoin and other Crypto currencies?
More Info : https://www.forbes.com/advisor/personal-finance/fednow-faqs/
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