FedNow Service has no relation with CBDCs, Federal Reserve clarifies

In a tweet, Federal Reserve stated that FedNow Service is similar to other payment services such as Fedwire and FedACH, which work within the boundaries of the fiat community. The FedNow Service is a payment service the Federal Reserve is making offered for banks and credit unions to transfer funds for their consumers. The Federal Reserve plans to onboard all 10,000 U.S. financial institutions in time to come.Related: Major US banks get passing grade in severe recession tension testOn May 11, the Federal Reserve revealed the integration of Metal Blockchain into the FedNow Service.Metal Blockchains listing in the FedNow Service Provider Showcase.

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The Federal Reserve of the United States clarified that its brand-new service for instant payments in between companies– FedNow Service– has no relation with main bank digital currencies (CBDCs). The Federal Reserve certified the FedNow Service as “prepared,” after it onboarded 41 banks, 15 service companies and the U.S. Department of the Treasury to check out the system, prior to its launch by the end of July 2023 The central bank had to clarify that the guarantee of instantaneous fiat payments and real-time gross settlement (RTGS) is not powered by a CBDC. #FedFAQ: Is the FedNow Service changing cash? Is it a reserve bank digital currency?Learn more about the #FedNow Service: https://t.co/ACBjfEhR4A https://t.co/IXF8dyy46S pic.twitter.com/7CUaYZYyM9— Federal Reserve (@federalreserve) July 19, 2023.