The U.S. Federal Reserve has announced it will establish a round-the-clock real-time payment settlement system, following Congressional debates over whether or not to leave the project to industry.
Dubbed FedNow, the service is set to launch in 2023 or 2024, according to the Federal Reserve’s announcement on Monday, and would sit alongside the existing Real-Time Payments (RTP) network run by The Clearing House (TCH), a consortium of U.S. banks.
The Fed said the instant payments network would yield economic benefits for consumers and businesses by providing them with "more flexibility to manage their money and make time-sensitive payments."
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