FedNow is an instant payment service that will operate around the clock – 24 / 7 / 365 – allowing businesses and individuals to send and receive instant payments.
Seems pretty straightforward, right?
FedNow is the Federal Reserve’s first new banking platform in over 40 years.
As Fed Chairman Powell prepares to push FedNow’s “start” button…
An estimated $73 trillion in funds — including over $1 trillion in Social Security payouts… and $8.3 billion in payroll deposits — stand ready to fire across FedNow’s real-time “rails”…
Meaning your money is about to travel faster — atomically faster, if you will — without any transactional delays.
See, through the power of atomic settlement…
FedNow, in effect, removes the “bank float” — i.e. the three-day period typically required for cash deposits to settle or clear.
Take paychecks, for example.
Although your account may show a deposit on payday…
Those funds aren’t available to withdraw until they clear, which could take anywhere between two to five days.
The same goes for credit card transactions…
Although most people think that Visa transactions happen instantly…
That is a fallacy, my friends…
Credit card transactions must settle, too.
Not only do such transactional delays — i.e. waiting… and waiting… and waiting… and waiting for funds to clear — have a crippling effect on GDP growth…
But “slow money” is antithetical to the concept of a digital economy.
Bottom line, money loves speed.
Therefore, by facilitating an instantaneous (atomic) exchange of funds between parties…
Without any transactional delays…
Without any 1960s-era clearinghouses…
Without any need for funds to “settle”…
FedNow increases the velocity of money — to its maximum level!
Can you now appreciate the moment?
Humankind has been methodically… painstakingly… laboriously… pushing toward a fully digital economy — i.e. a cashless society with instantaneous access to funds — ever since the first coin was forged in 600 BC.
FedNow marks the official beginning of such a digital world.
If you’d like to see it for yourself, you can by visiting: https://www.frbservices.org/financial-services/fednow
It’s here and it’s happening, the digital dollar . . . like it or not. Tomorrow we’ll discuss how this could be the death of the US dollar as we know it.
Meanwhile, since we’ll be paying for everything instantly through the Federal Reserve’s platform – we’d better keep earning a good living so click here to discover how to improve yours!