An instant payment service for banks and credit unions from the U.S. Federal Reserve launched in July 2023. Payment transfer takes seconds rather than days as when the Automated Clearing House (ACH) network is used. Although not directly available to consumers or businesses, they participate through their financial institutions. Transfers are expected to be capped at $500,000. Since 2021, more than 120 entities have participated in the FedNow pilot program, which includes the federal departments that issue tax refunds and social security benefits. See
ACH and
FedCoin.
FedNow and FedCoin
FedNow is a payment service, whereas FedCoin is a proposed digital currency. See
FedCoin.