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So it's like a Bitcoin exchange, but with dollars!

by foobarian 3y ago

deleted 3y ago
[deleted]
tarmon 3y ago
I don't see how this is anything like a crypto exchange, is there something I'm missing here?
- RC_ITR 3y ago
  Some crypto maximalists ignore many of the intrinsic aspects of crypto (decentralized consensus, cryptography, etc.) because in their use case, it's just 'digital money.' So when a completely dissimilar example of 'digital money' comes up, they equate it to crypto, even though it lacks many of the intrinsic aspects of crypto.
  - tourmalinetaco 3y ago
    None of the intrinsic aspects of crypto matter if its in a centralized exchange. In the cases of a centralized exchange BTC may as well equal fiat, for it has all of the downsides of fiat alongside the risk of an exit scam/mass theft, and with none of the insurances one may have with a fiat institution. So, unfortunately, for these “crypto” maximalists, the crypto aspect of their digital currency is just some fun trivia and not something they even bother to leverage.
AmericanChopper 3y ago
Some would say suspiciously so. Which is why some commentators think this is being implemented as a prerequisite of a CBDC.
- treyd 3y ago
  The FedNow project was in the works long before any serious CBDC idea was conceptualized.
  - AmericanChopper 3y ago
    I work with a couple of organisations that have been advising public institutions on their investigations into CBDCs, and the entire timeline of FedNow development took place after CBDCs had initially been conceptualised. CBDCs became a mainstream concept in 2016 when the Bank of England started discussing them publicly. The Faster Payments Taskforce report (which was the basis of FedNow’s design) came out in 2017, and the Fed announced its plans to start work on FedNow in 2019. Many advanced economies announced plans to start seriously investigating the use of CDBCs in 2021, but they’d all been discussing the concept for years at that point. I don’t know whether the fed’s investigation into CBDCs will result in it adopting one. But FedNow has been designed in such a way that it could easily be modified to support one. You’d just have to implement a version of it where the allowed participants were everybody who’s allowed to have a bank account, rather than only banks.
    - treyd 3y ago
      >But FedNow has been designed in such a way that it could easily be modified to support one. Curious how this would work, it would be a pretty big inversion of asset control to make it work. Saying "just have to" is a very big "just", considering it was aimed at only a few thousand institutions with very tight reporting requirements being the target audience instead of hundreds of millions of nontechnical users that would need something that just werks.
      - AmericanChopper 3y ago
        From the Fed's perspective it would be mostly changes to business processes to allow this to happen. Making it just work for end-users would could work in exactly the same way non-central bank digital currencies currently work, as in 3rd party institutions manage customer interfaces.
landemva 3y ago
It's like a centralized exchange in which funds can be seized, censored, and the participating brokers are licensed. Nothing like bitcoin.
- astrange 3y ago
  It's also not like bitcoin because the exchange doesn't own dollars deposited at them and isn't run by a guy living in Dubai who's going to steal all of it.
- yieldcrv 3y ago
  this is an odd consensus because you just described how all bitcoin exchanges in the US operate. they are centralized in which funds can be seized, censored, and they all have money services licenses just like their corresponding banks do. right, not like bitcoin, like bitcoin exchanges, just like the person said and you somehow ignored. far more similarities than differences for this comment and the other comments at your level to be focusing on the differences and confused about the existence of similarities.
  - fastball 3y ago
    There are decentralized exchanges which operate in the US.
    - pavlov 3y ago
      How does a US resident get US dollars out of a decentralized exchange?
      - landemva 3y ago
        Go old school neighborly. Convert it into something your friends or family want, then trade with them for the cash you want. If you don't know anyone that wants to help you reduce your bags of btc or eth, then consider finding a different community.
deleted 3y ago
[deleted]
melenaboija 3y ago
No, completely opposite. It is like a regular, centralized, and controlled by the government ledger[1] but faster, no more batch files at the end of the day like ACH and that is all. Now is a matter of banks to pay the providers[2] to integrate with their systems and ledgers. [1] https://www.youtube.com/watch?v=le8Me8AfK8k https://www.youtube.com/watch?v=le8Me8AfK8k [2] https://www.frbservices.org/news/press-releases/072023-fednow-live-announcement https://www.frbservices.org/news/press-releases/072023-fedno...

So it's like a Bitcoin exchange, but with dollars!

deleted 3y ago

[deleted]

tarmon 3y ago

I don't see how this is anything like a crypto exchange, is there something I'm missing here?

RC_ITR 3y ago
Some crypto maximalists ignore many of the intrinsic aspects of crypto (decentralized consensus, cryptography, etc.) because in their use case, it's just 'digital money.' So when a completely dissimilar example of 'digital money' comes up, they equate it to crypto, even though it lacks many of the intrinsic aspects of crypto.
- tourmalinetaco 3y ago
  None of the intrinsic aspects of crypto matter if its in a centralized exchange. In the cases of a centralized exchange BTC may as well equal fiat, for it has all of the downsides of fiat alongside the risk of an exit scam/mass theft, and with none of the insurances one may have with a fiat institution. So, unfortunately, for these “crypto” maximalists, the crypto aspect of their digital currency is just some fun trivia and not something they even bother to leverage.

AmericanChopper 3y ago

Some would say suspiciously so. Which is why some commentators think this is being implemented as a prerequisite of a CBDC.

treyd 3y ago
The FedNow project was in the works long before any serious CBDC idea was conceptualized.
- AmericanChopper 3y ago
  I work with a couple of organisations that have been advising public institutions on their investigations into CBDCs, and the entire timeline of FedNow development took place after CBDCs had initially been conceptualised. CBDCs became a mainstream concept in 2016 when the Bank of England started discussing them publicly. The Faster Payments Taskforce report (which was the basis of FedNow’s design) came out in 2017, and the Fed announced its plans to start work on FedNow in 2019. Many advanced economies announced plans to start seriously investigating the use of CDBCs in 2021, but they’d all been discussing the concept for years at that point. I don’t know whether the fed’s investigation into CBDCs will result in it adopting one. But FedNow has been designed in such a way that it could easily be modified to support one. You’d just have to implement a version of it where the allowed participants were everybody who’s allowed to have a bank account, rather than only banks.
  - treyd 3y ago
    >But FedNow has been designed in such a way that it could easily be modified to support one. Curious how this would work, it would be a pretty big inversion of asset control to make it work. Saying "just have to" is a very big "just", considering it was aimed at only a few thousand institutions with very tight reporting requirements being the target audience instead of hundreds of millions of nontechnical users that would need something that just werks.
    - AmericanChopper 3y ago
      From the Fed's perspective it would be mostly changes to business processes to allow this to happen. Making it just work for end-users would could work in exactly the same way non-central bank digital currencies currently work, as in 3rd party institutions manage customer interfaces.

landemva 3y ago

It's like a centralized exchange in which funds can be seized, censored, and the participating brokers are licensed. Nothing like bitcoin.

astrange 3y ago
It's also not like bitcoin because the exchange doesn't own dollars deposited at them and isn't run by a guy living in Dubai who's going to steal all of it.
yieldcrv 3y ago
this is an odd consensus because you just described how all bitcoin exchanges in the US operate. they are centralized in which funds can be seized, censored, and they all have money services licenses just like their corresponding banks do. right, not like bitcoin, like bitcoin exchanges, just like the person said and you somehow ignored. far more similarities than differences for this comment and the other comments at your level to be focusing on the differences and confused about the existence of similarities.
- fastball 3y ago
  There are decentralized exchanges which operate in the US.
  - pavlov 3y ago
    How does a US resident get US dollars out of a decentralized exchange?
    - landemva 3y ago
      Go old school neighborly. Convert it into something your friends or family want, then trade with them for the cash you want. If you don't know anyone that wants to help you reduce your bags of btc or eth, then consider finding a different community.

deleted 3y ago

[deleted]

melenaboija 3y ago

No, completely opposite. It is like a regular, centralized, and controlled by the government ledger[1] but faster, no more batch files at the end of the day like ACH and that is all. Now is a matter of banks to pay the providers[2] to integrate with their systems and ledgers. [1] https://www.youtube.com/watch?v=le8Me8AfK8k https://www.youtube.com/watch?v=le8Me8AfK8k [2] https://www.frbservices.org/news/press-releases/072023-fednow-live-announcement https://www.frbservices.org/news/press-releases/072023-fedno...