Discover and read the best of Twitter Threads about #FedNOW
Most recents (11)
5M views for @RobertKennedyJr’s anti-#CBDC tweet👇. #FedNow isn’t a CBDC but all the criticism from different corners is interesting.
A big issue w/ FedNow=banks don’t have enuf cash to handle the higher liquidity demands of 24/7/365 pymts. Banks need to hold *a lot* more cash!
A big issue w/ FedNow=banks don’t have enuf cash to handle the higher liquidity demands of 24/7/365 pymts. Banks need to hold *a lot* more cash!
2/ Yest, while on a podcast w/ @CathieDWood, I said out loud for the first time: #FedNow may not actually launch in July. Banks will need *a lot* more liquidity to handle 24/7/365 pymts, & to raise that cash they’d need to sell assets at loss—which wld reveal the solvency problem
🧵1/Ω A few things about @crossriverbank, a tiny #a16z funded lender that originated more #PPP loans for "small businesses" than anyone besides Chase, BofA, and Wells Fargo, mostly for people who were not their customers.
Also @coinbase's preferred bank.
techcrunch.com/2022/03/30/cro…
Also @coinbase's preferred bank.
techcrunch.com/2022/03/30/cro…
🧵2/Ω They paid @McKinsey a bunch of money to tell the world that "while most banks originated PPP loans to their own customers, Cross River leads in originations to new customers"
mckinsey.com/industries/fin…
mckinsey.com/industries/fin…
🧵3/Ω Unlike other banks that blew up on "fund banking" recently (*cough* $SBNY $SIVB *cough*) @crossriverbank does their "fund banking" differently:
They package all the loans and sell them to weird "fintech" companies like @Upstart. @mikulaja
They package all the loans and sell them to weird "fintech" companies like @Upstart. @mikulaja
1/ MỘT KẾ HOẠCH KHỔNG LỒ VỚI #FedNow .
Rỏ ràng ông #Powell không nói nhầm, và cũng không nói đùa.
Ý của ông ấy không chỉ là #CBDC , mà còn có 1 thứ còn đáng sợ hơn #CBDC đó là #FedNow - dịch vụ chuyển tiền xuyên biên giới tức thì, 24/7, 365 ngày/ năm.
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Rỏ ràng ông #Powell không nói nhầm, và cũng không nói đùa.
Ý của ông ấy không chỉ là #CBDC , mà còn có 1 thứ còn đáng sợ hơn #CBDC đó là #FedNow - dịch vụ chuyển tiền xuyên biên giới tức thì, 24/7, 365 ngày/ năm.
...
2/ #Fednow là dịch vụ được phát hành và điều hành trực tiếp bởi cục dự trử liên bang Mỹ- FED.
Trước đây, cục này có một vài dịch vụ tài chính như lưu ký, DV chứng khoán, DV quỹ, ... đa phần là nhắm đến các tổ chức Tài chính.
Còn lần này,#FedNow rất khác
Trước đây, cục này có một vài dịch vụ tài chính như lưu ký, DV chứng khoán, DV quỹ, ... đa phần là nhắm đến các tổ chức Tài chính.
Còn lần này,#FedNow rất khác
3/ #FedNow cung cấp các dịch vụ chuyển tiền rất đa dạng: P2P ( người với người), A2A ( tài khoản với tài khoản như Crypto là ví với ví), B2B ( doanh nghiệp-DN), B2C ( doanh nghiệp vs người tiêu dùng), C2B, người tiêu dùng đến các tổ chức tài chính, ....
Just remember this quote:
"TassatPay offers a seamless, secure path to private permissioned blockchain-based commercial banking."
#FEDNOW does not use any public blockchains. Period. End of story.
Who has told you for years that Banks will not use volatile cryptocurrency?
"TassatPay offers a seamless, secure path to private permissioned blockchain-based commercial banking."
#FEDNOW does not use any public blockchains. Period. End of story.
Who has told you for years that Banks will not use volatile cryptocurrency?
Tassat is blockchain-based, and it's based on #Ethereum.
#FEDNOW is a "blockchain-based product".
La FED 🇺🇸 lancera "FedNow" en juillet, un système de paiements instantanés.
#FedNow vise à réduire l'écart de temps de paiement entre les institutions financières américaines.
Considéré par certains comme une alternative aux CBDC et aux stablecoins.
#FedNow vise à réduire l'écart de temps de paiement entre les institutions financières américaines.
Considéré par certains comme une alternative aux CBDC et aux stablecoins.
Le réseau de paiement instantané réglera les paiements en quelques secondes et peut prendre en charge les transactions entre les consommateurs, les commerçants et les banques.
Il ne repose pas sur la technologie blockchain.
Il ne repose pas sur la technologie blockchain.
La certification formelle des participants" commencera en avril.
"Les premiers utilisateurs suivront un programme de test et de certification des clients [..] pour se préparer à l'envoi de transactions en direct via le système".
"Les premiers utilisateurs suivront un programme de test et de certification des clients [..] pour se préparer à l'envoi de transactions en direct via le système".
1/ SVB—WHAT WENT WRONG
* mgmt: debauched its balance sheet
* depositors >$250k: thought their deposit at a fractional-reserve bank wasn’t an unsecured loan to a leveraged borrower (it is)
* Fed as regulator: that morning, the top cop said Fed-supervised banks don’t have bank runs
* mgmt: debauched its balance sheet
* depositors >$250k: thought their deposit at a fractional-reserve bank wasn’t an unsecured loan to a leveraged borrower (it is)
* Fed as regulator: that morning, the top cop said Fed-supervised banks don’t have bank runs
2/ * Fed FOMC: created the “gap risk” now kneecapping community banks (which met their bank capital rqmts by buying long-term bonds)
* bank risk managers: didn’t realize such gap risk (unhedged risk of a spike in interest rates) would morph into big liquidity risk amid a bank run
* bank risk managers: didn’t realize such gap risk (unhedged risk of a spike in interest rates) would morph into big liquidity risk amid a bank run
3/ * the existence of fractional-reserve banking: means the system is inherently unstable & prone to bank runs bc it’s insolvent as a whole
* banks: didn’t raise equity capital at first sign of trouble
* bond mkt: who knows where true interest rates wld be if not manipulated?
* banks: didn’t raise equity capital at first sign of trouble
* bond mkt: who knows where true interest rates wld be if not manipulated?
1/ I'VE BEEN THINKING abt #crypto & banking, which is in the news these days (& I'm living it too). I've spent yrs thinking abt the issues. Yes it *IS* possible for trad banks to safely bank #crytpo industry: simply back demand deposits 100% w/ cash held in a Fed master acct.💡
2/ But that's NOT what the US banks banking #crypto generally are doing. Pls see for yourselves by reviewing their financial statements--you'll see, eg, >10yr securities backing demand deposits that customers cld withdraw in minutes🤦♀️. That's a prob but isn't inherent to #crypto!
3/ I just finished updating a balance sheet analysis of the banks that bank #crypto & something jumped out at me--8x, which is a number I've seen before. When any bank puts 8x its shareholders' equity at risk in anything & that thing goes haywire, the outcome is predictable.🔮💡
1/ NEW ARTICLE abt why USD-collateralized #stablecoins shld be backed 100% by cash deposited at Fed. Even T-bills don't work--bc they settle next day, but last wk a stablecoin collapsed w/in hours. Need *real-time* liquidity (only avail at Fed).@RiskDotNet
risk.net/comment/794869…
risk.net/comment/794869…
2/ This is another in a long collaboration w/ Dr. Manmohan Singh of @IMFNews about financial sector plumbing. He has taught me so much over past decade.
Sum:
* D.C. policymakers are moving away from view that #stablecoins should be issued only by insured depository institutions
Sum:
* D.C. policymakers are moving away from view that #stablecoins should be issued only by insured depository institutions
3/ That's good IMHO bc deposit insurance funds should be insulated from crypto--bc settlement differences are too big (could trigger runs on banks at financial system core). Policymakers r moving toward ring-fencing the risk as they should IMHO
* Next ?=back w/ T-bills or cash?
* Next ?=back w/ T-bills or cash?
MORE FED COMMENTS ABOUT #stablecoins. Watch this space--putting pieces together, Fed action is coming:
federalreserve.gov/newsevents/spe… #Consensus2021
federalreserve.gov/newsevents/spe… #Consensus2021
"Depending on underlying arrangements, some may expose consumers and businesses to risk. If widely adopted, #stablecoins could serve as the basis of an alternative payments system oriented around new private forms of money."
"Given the network externalities associated w/ achieving scale in payments, there is a risk that the widespread use of private monies for consumer payments could fragment parts of the U.S. payment system in ways that impose burdens and raise costs for households and businesses."
#CashlessConsumer Much has been talked about #ZeroMDR amidst lot of panic based misinformation, half truths.
1.1.2020 marked 3 significant changes to payment industry all of which have deep implications. #Thread
1.1.2020 marked 3 significant changes to payment industry all of which have deep implications. #Thread
Facts first and opinions later.
On 30 Dec, FinMin clarified provisions in Finance Act relating to digital payments
1. 269SU meant for large companies > 50 Crores, mandating to accept "prescribed modes"
2. 271DB - Penalty for violating 269SU
On 30 Dec, FinMin clarified provisions in Finance Act relating to digital payments
1. 269SU meant for large companies > 50 Crores, mandating to accept "prescribed modes"
2. 271DB - Penalty for violating 269SU
incometaxindia.gov.in/communications… - Link to notification.
269SU makes #ZeroMDR, but important to note its applicable only for large businesses and only for "prescribed modes"
Prescribed modes came via incometaxindia.gov.in/communications…
269SU makes #ZeroMDR, but important to note its applicable only for large businesses and only for "prescribed modes"
Prescribed modes came via incometaxindia.gov.in/communications…
