The U.S. Federal Reserve has finally launched FedNow, its quick payments service, in which 35 banks and credit unions are participating. JPMorgan Chase and Wells Fargo are among the early adopters.
The service seeks to make everyday payments faster and easier by providing just-in-time access to wages and invoices.
The Fed, however, denies that FedNow is related to a digital currency. They claim that it is neither a form of currency nor a step toward eliminating any payment, including cash.
The service will be available 24/7. FedNow will process payments in seconds, unlike the current U.S. clearinghouse system, which offers same-day service or waits of days or weeks for check cashing.
Despite the launch of FedNow, the Fed claims this service has nothing to do with central bank digital currency (CBDC).