The Federal Reserve is reportedly pushing the Launch of its FedNow Service to June 1, 2023. Initially, the service was to be launched on July 1, 2023. After one user on Twitter posted an image from the FedPayments Improvement website, wild speculations began to spread on Twitter that the launch would happen on June 1. But is there any truth in these speculations?
About the FedNow Service
The FedNow service is a nationwide platform that belongs to the Federal Reserve Bank. The service will allow instant payments by financial institutions nationwide, regardless of the size of the transfer or the geographical location where you are.
The services will also happen 24/7 without any downtime or weekend offs. The recipients of any payment made through the FedNow service will have access to the funds instantly through the FedLine Network, on which more than 10,000 banks currently operate.
While some have anticipated that FedNow is coming to kill services like PayPal, Venmo, CashApp, and Zelle, the Fed has made it clear that FedNow will not kill or replace other money transfer options.
Do we believe them? Well, that’s a whole other topic.
Will FedNow Launch in June or July? Facts
The post making rounds on Twitter is from one user Rohitku24694375. The user is an avid fan of the cryptocurrency XRP and a great proponent of the ISO20022 bank messaging standard that went live on March 20, 2023.
Rohitku shared the image from the official FedPayments Improvement website, which is part of the Federal Reserve. The announcement on the events calendar page shows that Connie Theien, head of Industry Relations for the Fed Financial Services will be speaking on June 1, 2023.
The contents of his speech will include insight into the countdown to the launch of the FedNow Service. It seems many got confused by the announcement and concluded that the FedNow launch had been moved to June 1.
The fact that the United States is currently on high debt default risk, many anticipated or theorized that the push to launch FedNow on June 1 was because the U.S government would not raise the debt ceiling as they have done many times in the past and would escape to Central Bank Digital Currencies (CBDCs) with their new FedNow system.
The United States is currently $31.4 trillion in debt and has only 9 days (until June 1) to clear those debts. President Biden and House Speaker Kevin McCarthy did not reach an agreement on Monday, May 22, 2023, on raising the debt ceiling. McCarthy said the meeting was “productive but not progress.”
Vincent Munene is a freelance writer and a great blockchain enthusiast. Blockchain has changed his life in terms of financial freedom and in return, he likes to educate people and keep them up to date on everything blockchain. He is a Biochemist by profession and also loves to play the piano.