With the imminent arrival real-time payments, the US will revolutionize its financial system. Fed Chair Jerome Powell announced that banks across the country will soon be able to offer instant funds and real-time payment options through Fed Now.
The Fed Now system will eliminate any advantages that digital assets have over traditional finance, with a release date of May or July. Powell stated that real-time payments will be implemented very soon, which would provide a substantial boost to the banking industry in the country.
Powell also discussed the possibility of an integrated central bank digital money (CBDC), to the US financial system during the meeting. Powell acknowledged the potential for it to replace stablecoins but noted that the CBDC’s evaluation would take years and there was no timeline for its implementation.
Real-time payments are a significant development that will be beneficial to many industries. It will make it possible for businesses to be more competitive and efficient in their operations by reducing the time and costs involved with making payments.
Real-time payments are also being implemented to increase financial inclusion. This will allow underserved communities to have access to affordable banking services. This will undoubtedly increase economic growth, reduce poverty and increase financial stability.
The US is poised for a financial revolution thanks to the arrival of real-time payment. This technology is on the horizon and, as Powell said, we can expect to reap its benefits soon. While the integration of a CBDC will take some time, the benefits it provides are enormous. The US is on track to become a world leader in digital payments. It will provide its citizens with more convenient, affordable and accessible financial services.