The Fed launched a system of instant bank transfers

the US Federal Reserve (The Federal Reserve Bank, the central bank) on Thursday launched its system for instant bank transfers for businesses and individuals, called FedNow.

The Federal Reserve created the service FedNow “To help make everyday payments for years to come faster and easier,” Central Bank President Jerome Powell was quoted as saying in a statement.

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Yet instant money transfers are not the norm in a country where checks are still widely used.

Despite the announcement, out of 7,000 commercial banks in the US, only 35 have signed on to the system, including well-known banks like Wells Fargo and JP Morgan Chase.

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“The United States is far behind the European Union, Britain or Brazil” in this regard, Gregory Daco, chief economist at EY Parthenon, told AFP. “Money transfers take a very long time compared to current technology,” he added.

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