FED Sets Date for FedNow System: Will It Compete With Stablecoins?

FED from the vice presidents Lael Brainardinstant digital payment service expected to be implemented in the USA FedNow announced a timeline for

According to Brainard’s statements, FedNow will be launched in the USA between May and July 2023. Brainard made the following statement in his statements:

“With FedNow, the new instant payment system of the FED, our citizens will now be able to transfer money through banks in seconds. FedNow will also greatly reduce the commission expenses of businesses, apart from money transfer.”

According to sources, every time a consumer makes a purchase with a debit card in the US, the business owner pays an average commission of $0.23. Although this amount may seem small at first, it increases exponentially with the number of customers. As a result, business owners have to reflect this expense item in their prices.

Is FedNow Competing With Stablecoins?

in the USA CBDC and stablecoins It was one of the hottest topics of last winter. Because stablecoins are independently collateralized at the end of the day US Federal Reserve (FED), stablecoins are not very friendly. It can be interpreted that the FedNow project is aimed as an alternative to stablecoins.

Stablecoins also have several advantages as they are a cryptocurrency at the end of the day. Since the transfer of stablecoins is made with blockchain technology, it is very fast and inexpensive. However, cryptocurrencies are naturally not fully controlled by states. This is a big problem for states. No concrete steps have been taken in the country for CBDC (digital government money). However, stablecoins are under serious government surveillance.