Fed Governor Touts FedNow as Alternative to CBDC

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The Fed’s upcoming payment service fulfills many of the same purposes as a CDBC.

Key Takeaways

  • Governor Michelle Bowman said today that the Federal Reserve’s FedNow service could be ready by mid-2023.
  • She suggested that the payments service addresses the need for a central bank digital currency (CDBC).
  • She also said that the Federal Reserve is creating expectations for banks that want to provide crypto services.

The U.S. Federal Reserve is considering a payment system that could reduce the need for a central bank digital currency (CDBC).

Federal Reserve Touts FedNow Benefits

A service called FedNow could fulfill a role envisioned for CBDCs.

Governor Michelle W. Bowman of the U.S. Federal Reserve made various comments on the matter today during a speech at the VenCent Fintech Conference in Little Rock, Arkansas. In her address, she said that the Federal Reserve is developing a service called FedNow, a payment service that is aimed at depository institutions.

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