There is so much misinformation about FedNow in this sub. It's just the US version of the UK's Faster Payments Service, which has been around for a decade. It's just a faster replacement for ACH.

I get the hate over CBDCs, but FedNow is a separate infrastructure service that can coexist with crypto. It's just an instant-payment replacement for ACH, so you will be using it for onramping and offramping to crypto exchanges without having to wait the usual 3-business days.

To get a sense of how it works, you can just look at the UK's Faster Payments Service (FPS), which was launched in 2008 to replace their slow Bankers' Automated Clearing System (BACS). There have been no authoritarian complaints about it in the past decade.

FPS provided monetary transfers within minutes, similar to Zelle, Square Cash, PayPal, Android Pay, Apple Pay, etc. It also works for interbank transfers so people no longer had to wait 3-7 business days for funds to arrive. And it's an optional service. All the other 3rd-party money transfers services still exist.

And that's the entire purpose of FedNow. It's a payments infrastructure system that's just a faster version of ACH. With FedNow, you no longer have to wait for funds to clear in 3-business days.