Innovating Payments News: Weekly Top 3

With so much taking place in the payments industry--particularly as relates to faster payments initiatives--NEACH is instituting a weekly "Top 3" roundup of the most pressing industry developments. We will be issuing this post each week, aggregating the news items rising to need-to-know status. This first issue includes highlights of the past month to emphasize key announcements. 

Top News for the Premiere Issue

1. Fed issues proposed rule related to FedNow Service (CUInsight)
The Federal Reserve Tuesday issued a proposed rule to govern funds transfers over its FedNow Service that would establish a new, comprehensive set of rules and set out legal rights and obligations of the Reserve Banks and FedNow Service participants. Read more. 

2. Federal Reserve Chair Jerome H. Powell outlines the Federal Reserve's response to technological advances driving rapid change in the global payments landscape (Press Release from the Board of Governors of the Federal Reserve System)
Technological advances are driving rapid change in the global payments landscape. The Federal Reserve is studying these developments and exploring ways that it might refine its role as a core payment services provider and as the issuing authority for U.S. currency. In addition, Federal Reserve Board Chair Jerome H. Powell announced that the Federal Reserve plans to publish this summer a discussion paper that will explore the implications of fast-evolving technology for digital payments, with a particular focus on the possibility of issuing a U.S. central bank digital currency. The paper will complement Federal Reserve System research that is already underway. Read more and watch the video of Powell's remarks.

3. Innovative Banks Back Intelligent Bill Pay Capability on the RTP® Network (Press Release from The Clearing House)
CEOs of 23 leading financial institutions, along with the chief executives of Jack Henry & Associates and Fiserv, are committing to delivering the next revolution in how bills are delivered and paid by creating a smarter, safer, and more transparent digital experience via the RTP®Network, the real-time payments network from The Clearing House. Read more.

What do you think of the FedNow Request for Comment? The exploration of CBDC? RTP's movement into bill pay? We welcome your thoughts/comments on these news items. Reply here or reach out to me directly. And stay tuned for next week's issue!