Global: Fed Chair Jerome Powell Says US will have Real-Time Payments “Very Soon”

Speaking on March 8, 2023, Fed Chair Jerome Powell says the US will have real-time payments “very soon.” Moreover, Powell spoke on the potential integration of a CBDC that won’t arrive for “years,” whereas the implementation of real-time payments for all banks is realistically close.

At the Federal Reserve’s Semi-Annual Monetary Policy Report meeting, Powell discussed topics from a potential US debt default to stablecoins. Subsequently, he answered questions on the instant payments between bank accounts. Assuring us it is just on the horizon.

Powell Discusses Real-Time Payments

Speaking at  at the Federal Reserve Semi-Annual Monetary Policy Report meeting, Fed Chair Jerome Powell stated that the US will have real-time payments very soon. Specifically, he was asked about digital currency and the Fed Now faster payment systems. Leading to Powell’s assertion that it is close to being released to the public.

“What Fed Now will do is it will enable all the banks, any bank in the United States, not just the big ones, to offer instantly available funds and real-time payments to their customers,” Powell stated. Additionally, noting, “I think we can get this into the hands of the public very quickly. I think we’ll have real-time payments in this country very very soon.”

During the meeting, it was revealed that the Fed Nowservice has a target release date between May and July. Moreover, Powell asserted that the real-time payment system integrated into the Fed Now system would take away any advantage that the digital asset industry has over traditional finance.

Conversely, Powell was asked about digital currency, and its potential to replace stablecoins. Consequently, the Fed chair noted that “a CBDC is gonna be years in the evaluation,” remarking on its potential integration into the US finance systems.