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The Fed is getting into the real-time payments business

Aug 5, 2019😶Neutral

The Fed announced Monday that it will develop a real-time payment service called "FedNow" to help move money around the economy more quickly.

During two Congressional hearings on Libra last month, some lawmakers called on the Fed to create a real-time payment system itself rather than having to rely on a network developed by Facebook.

Many of America's largest banks are already part of a coalition called The Clearing House, which offers real-time payment-processing services. Existing real-time payment systems also typically notify payers immediately that their money has been received.

American Bankers Association CEO Rob Nichols said in the statement.

"We hope today's decision by the Federal Reserve to create its own real-time payments network will speed that transition."

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