"Direct Money Transfers from Federal Reserve's new Digital currency?
Can The Federal Reserve make money faster? Sure much faster it seems. No wheel barrel will be needed to haul around for currency! The down side is no paper money to burn in the furnace to keep warm in the winter.
serf
As Coronado explains the details, Congress would grant the Federal Reserve an additional tool for providing support—say, a percent of GDP [in a lump sum that would be divided equally and distributed] to households in a recession. Recession insurance bonds would be zero-coupon securities, a contingent asset of households that would basically lie in wait. The trigger could be reaching the zero lower bound on interest rates or, as economist Claudia Sahm has proposed, a 0.5 percentage point increase in the unemployment rate. The Fed would then activate the securities and deposit the funds digitally in households’ apps.
Addressing this issue, on Thursday afternoon, Federal Reserve Governor Lael Brainard hinted once again at the coming monetary revolution when she said that the Fed is studying the opportunities and challenges presented by central bank digital currencies.
"To enhance the Federal Reserve’s understanding of digital currencies, the Federal Reserve Bank of Boston is collaborating with researchers at the Massachusetts Institute of Technology in a multi-year effort to build and test a hypothetical digital currency oriented to central bank uses."
-
I reckon they'll be syphoning fractional dollars and cents when they move it electronically. Think "Office Space". 0 -
New info and now we have crypto blockchain Fed/Now. You will get an app before long and get your stimulus check to spent through pay/pass. Who needs pay-pal now? Zero'/negative interest rates no problem they will just take it out at will. No cash is needed and of course point of sale tax being city county state or Federal no problem. A cashless society along with the loss of a reserve currency for The USA once it gets going at full speed for all with the other players in the blockchain world wide.
This site is a product of the Federal Reserve Banks.
To support banks’ planning, the Fed has committed to a specific criteria for the system. First, the FedNow Service will operate 24/7, 365 days a year, and all financial institutions eligible to hold accounts at Reserve Banks will have access. Transactions will settle in banks’ master accounts or that of a correspondent bank.
The Fed plans to employ a credit model similar to other real-time payments systems around the globe. It will leverage the ISO 20022 messaging standard, allowing for descriptive information, such as remittance details, to move with the payment. This messaging standard supports additional descriptive information related to payments, such as payment instructions, confirmations and requests for payment. The Fed has shared that transactions will be irrevocable, so there is a finality behind the payment.
Universal financial industry message scheme
ISO 20022 is an ISO standard for electronic data interchange between financial institutions. It describes a metadata repository containing descriptions of messages and business processes, and a maintenance process for the repository content. The standard covers financial information transferred between financial institutions that includes payment transactions, securities trading and settlement information, credit and debit card transactions and other financial information.
0
Please sign in to leave a comment.
Comments
2 comments