FedNow Service has no relation with CBDCs, Federal Reserve clarifies

The USA Federal Reserve clarified that its new service for immediate funds between organizations — the FedNow Service — has no relation with central financial institution digital currencies (CBDCs).

The Fed licensed the FedNow Service as “prepared” after it onboarded 41 monetary establishments, 15 service suppliers and the U.S. Division of the Treasury to check the system earlier than its launch by the top of July 2023. Nevertheless, the central financial institution needed to make clear that the promise of on the spot fiat funds and real-time gross settlement (RTGS) isn’t powered by a CBDC.

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