Fednow Explained | It Will Not End Financial Freedom
Today we will talk about the fed now payments system.
Many of you might have heard of this new fednow system.
Tiktok is rampant with lots of people warning about this fed now program that’s poised to disrupt the world order. The US banking nightmare is about to get worse, it’s armageddon on earth etc etc. The worry is that fednow is allegedly a way for the federal government to control your money. There’s claims the fednow is an invasion of privacy.
Uninformed commenters on the internet are claiming the fednow program will one day be used to stop people from purchasing stuff the US government doesn’t approve of.
Some have gone as far as saying this fednow payment system will give the government power to monitor, freeze or even seize bank accounts for political beliefs that don’t align with the state.
Of course all of this is pure nonsense.
The fednow payment system is a digital system created by the federal reserve.
Fednow’s core feature is to make sure payments arrive in their accounts faster, it's clearing and settlement features will be available 24 hours a day, 7 days a week and 365 days a year. It’ll always be available basically.
Fednow simply replaces the older outdated systems for banks. With it, fednow will give banks and credit unions the ability to transfer funds to their customers.
This on demand real time clearing and settlement system between banks will help facilitate faster payments.
AS more banks join Fednow’s network, it will enable individuals and businesses to receive a paycheck immediately. Any company will be able to access funds right away when an invoice is paid.
Now consumers like you or I won’t be able to access fednow using an app because the fednow service was created for banks.
You can think of the fednow service as something banks will use to ensure your money arrives in your bank account faster.
Participating Banks are expected to offer fednow services soon.
Fednow isn’t meant to replace payment apps like PayPal, apple pay, your cash app or venmo.
The new payment system is designed to slot into the financial system as an optional alternative to other payments.
The only way to access fednow is through your own bank.
Banks need to actually choose to sign up to use the fednow payments system.
Over 35 American banks including jpmorgan and wells fargo are planning on offering fednow services.
You might question why the banks would need fednow, when they’ve already banded together to create their own finance app called zelle.
#fednow #business #zelle