There are many misconceptions circulating ever since the Federal Reserve in the United States announced its plans of initiating the FedNow Service. While many are concerned that this service will change the banking sector and currency altogether in the U.S. there is little to no evidence indicating that. That is not to say that this service is free from criticism because it does seem to allow bank bailouts to go around the approval of the U.S. government. From the Federal Reserve's own governmental site, it states:
"At the most fundamental level, the service will provide interbank clearing and settlement that enables funds to be transferred from the account of a sender to the account of a receiver in near real-time and at any time, any day of the year."
This certainly comes at a convenient time, as Silicon Valley Bank collapsed nearly a month ago and the Federal Reserve first introduced the FedNow service only five days after the SVB Collapse. This service basically provides other financial institutions the ability to transfer funds whenever it is necessary. The U.S. cannot get behind free college for its citizens, but if the 1% need to be bailed out, you can bet your ass the U.S. government will step in to act. Socialism for the rich, while we have rugged individualism and feudalism for the rest of America. It is disheartening to say the least.
This is a developing story; more will be covered on this as more information comes out about the FedNow Service and once the service itself is launched.
References
Federal Reserve Board - FedNowSM Service. (n.d.). Board of Governors of the Federal Reserve System. https://www.federalreserve.gov/paymentsystems/fednow_about.htm
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