- The Fed will start “formal certification of participants” in the first week of April.
- Production validation efforts will be carried out in June by the Fed.
The Federal Reserve of the United States introduced its domestic instant payments system, called “FedNow,” on Wednesday, March 15. A strong collection of fundamental clearing and settlement functions and value-added services will be available from the start.
To keep the boxes of security, resilience, and innovation from being checked off, it will be incorporating further features and advancements into subsequent versions. The FedNow program, as promised by the central bank, will launch sometime in July.
The Fed will start “formal certification of participants” in the first week of April, per the announcement. Significantly, early adopters will undergo a “customer testing and certification program” in order to facilitate transactions using the system. Production validation efforts will be carried out in June by the Fed and accredited participants. Assuring “readiness” for July’s ultimate launch is the purpose of this.
Offering Modern Instant Payment Solution
According to the news announcement, many people have already expressed their plan to begin utilizing the service in July. In reality, they come from a wide range of financial organizations, from small credit unions to multinational banks and the United States Treasury.
FedNow executive and First Vice President of the Federal Reserve Bank of Boston Ken Montgomery stated:
“We couldn’t be more excited about the forthcoming FedNow launch, which will enable every participating financial institution, the smallest to the largest and from all corners of the country, to offer a modern instant payment solution.”
In addition, he stressed the need of moving full speed ahead with preparations to join the FedNow Service for financial institutions and their industry partners. Montgomery continued by saying that the service’s current availability is only the beginning. He thinks that expanding the group of involved financial institutions is essential to its success.