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Federal Reserve's FedNow Service for Instant Payments Unrelated to CBDCs, Clarifies Central Bank

The Federal Reserve of the United States has confirmed that its new instant payment service for organizations, FedNow Service, is not a central bank digital currency (CBDC). The FedNow Service has been certified as "ready" after testing with 41 financial institutions, 15 service providers, and the U.S. Department of the Treasury, and is set to launch by the end of July 2023.

The service offers instant fiat payments and real-time gross settlement (RTGS) within the fiat ecosystem, similar to other payment services like Fedwire and FedACH. The Federal Reserve has not yet decided on issuing a CBDC and would only do so with an authorizing law.

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