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!
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
3/ And there’s another reason I said that as well: the sudden but inaccurate groundswell of “#FedNow is a #CBDC” criticism. It’s starting to come from multiple “strange political bedfellow” directions. The #FedNow critics are not wrong abt it in two ways tho:
Read 6 tweets
🧵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.… ImageImage
🧵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"…
🧵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 Image
Read 40 tweets

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
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, ....
Read 13 tweets
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?
Tassat is blockchain-based, and it's based on #Ethereum.
#FEDNOW is a "blockchain-based product".
Read 5 tweets
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.
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.
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".
Read 5 tweets
* 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
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?
Read 14 tweets
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.🔮💡
Read 11 tweets
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…
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.

* 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? Image
Read 8 tweets
- September Wrecktember! NineSeventeen?
- Markets planned to crash under BidAn
- 99% cryptos will tank
- Digital Yuan & #ISO20022 tokens backed or pegged to #Gold/other assets
- Grab ISO bargains now
- New Fork
- New Fin system will rise from the ashes
- New Gov
- #tiktok 3, 2, 1
Read 16 tweets
MORE FED COMMENTS ABOUT #stablecoins. Watch this space--putting pieces together, Fed action is coming:… #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."
Read 11 tweets
#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
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… - 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…
Read 16 tweets

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