Federal Reserve to Launch Real-Time Payments System in July

The US Federal Reserve is launching its real-time payments system, FedNow, in July, which will provide immediate access to funds and solve existing delays for clearing financial transactions between institutions. The system will operate around the clock and is seen as a potential precursor to a central bank digital currency (CBDC). However, the service could also undermine one of the key strengths of a digital dollar – the ability to transfer instantly. The banking industry had already launched its own RTP network in 2017.