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: