The United States Federal Reserve Board is planning to release a real-time payments and settlements service in order to boost the payments infrastructure in the country.

A press release published on Aug. 5 reads that the Board of Governors of the Federal Reserve System has requested that Federal Reserve Banks develop a new interbank real-time settlement service to support faster payments in the U.S. The payment system is called FedNow and will purportedly launch in 2023 or 2024.

By launching FedNow, the Fed aims to modernize the country's payment system with a real-time service that can transfer funds around the clock and on weekends and weekdays. The service will purportedly be available to both businesses and the general public.

The Fed believes that such a system will allow consumers to more flexibly manage their money and make time-sensitive payments and is requesting comment on the possible design and functionality of the new service. Commenting on the issue, Federal Reserve Board Governor Lael Brainard said:

"Everyone deserves the same ability to make and receive payments immediately and securely, and every bank deserves the same opportunity to offer that service to its community. FedNow will permit banks of every size in every community across the country to provide real-time payments to their customers."

Reaction from the community

Some members of the cryptocurrency community are nonplussed by the Fed’s plans to launch its own real-time payment system. Anthony Pompliano — co-founder of crypto asset management firm Morgan Creek Digital Assets — tweeted, “Bitcoin is already available.”

Others were more diplomatic with their response. Gabor Gurbacs, director of digital assets strategy at MV Index Solutions, a subsidiary of investment management firm VanEck, tweeted:

“Great that the @federalreserve is taking a forward looking and intelligent stance regarding innovation in #DigitalAssets and #payments. I recommend considering the benefits of #Bitcoin, a functioning, reliable, trust-minimized base-layer for sound money.”

Other crypto-related companies are positioned to make a contribution to the project. In June, Ripple Labs was elected to the Federal Reserve’s Faster Payments Task Force Steering Committee. The initiative intends to build “fast, safe and ubiquitous payments network in the U.S.”

The Federal Reserve cut interest rates last week, a move which some experts say could be partially responsible for Bitcoin’s (BTC) recent price rally. Fundstrat Global Advisors co-founder Tom Lee said: