Money is the substance of the financial flow model, within the world model. Base model = Marcia Stigum, which needs some updates but is fundamentally sound. FedNow, is a next wave of the FRB Book-entry exercise, but move to continuous 24×365 from Book-entry’s discrete 1×365 settlement model. A form of the STACS rolling realtime accounting system for the United States money supply. Enablement for globalized realtime payments, maybe. An interesting case study for a whole series of things, one of which is how to comprehend the future as it appears in front of us, and how we are able to understand it, and actively create and shape how it unfolds in a interactive form as we all move through the space together.
This is getting fun. Great visual! Also, note algorithm notes and other information as you hover over players.
There is a whole fruit salad of innovation in FinTech happening here. I remember this space in the 1980’s when the first glossy magazines started coming out of NYC about the wonks writing Apple ][ code for traders and fund managers, and using Telerate as a market feed, along with others. It’s moved a bit, but it’s the same game. How many player understand the real fundamentals. Some things don’t change. They just change flavors. Nothing wrong with that. You can run a Six Sigma economy indefinitely on consistency. People want variety. That feeds invocation, and screws up mechanical consistency. So there are degrees of freedom and concerns about hard core outliers. But then, some people keep wanting time to go backwards while going forward. Won’t and can’t happen; but that doesn’t stop people from trying. And polite engineers who know better are afraid to tell the Emperor he has no clothes. And managers who know the issue doesn’t become critical until after their watch, have hard choices about how to address triage, planned and organized growth, and ultimate consistency with core vision and values. Without a truly shared, common vision; how do you measure values?
, but also the same scheme should work as a model for the ISM,Six Sigma baseline, etc Q&A which we want to have as dialog.
Clue: If that’s how you think tariffs work, you are a moron, not an engineer. Go to school! Use your functional abilities as a human, and engage your brain.
Relative to AI, the point is not to make a machine think smarter, faster or better than a human. The point to AI, and especially FinTech, is to enable humans to think more financially effectively about the complex world in which we operate and live; which is only going to become moreso.
- Understand why the f*** people even invented the concept of money to begin with. Money is the common denominator to currency. Currency is how countries establish worth, value in the human economic community. The exchange is people’s product measured in “money” against all other people’s products of equal economic ($) utility. Money is a convenient, friction-less ability to move “capital” (aka “Money”) wherever, however, with what varied degree of [financial] risk that it will lose net value for stable exchange of any movement between sectors in the grid:
- current value for current goods / services
- current value for deferred goods / services
- deferred value for current goods / services
- deferred value for deferred gods / services
- Enhance it’s effectiveness toward the social goal and functionality for which it provides value.
Stupid people play stupid market games and think they can outsmart society and collect a free lunch from selectively applied economic theory. These people kill economies and crash banks and default governments. It would help if the news and investigative reporters would point this out and think more critically also. Instead of playing with electronic toys. Take an Econ class to go with your social media algorithms studies. FinTech is supposed to be done quietly, discretely, and correctly as a background task. It isn’t supposed to be in my face all the time. Liam, and the rest of the clowns in retail marketing who made up the mind warp that customers actually wanted their banks to be more like McDonalds, because everyone needs to open a checking account everyday, except the people who need it who we refuse to accept as customers because they don’t carry balances, they just cash checks. If you sell people a quality product, they will buy it again the NEXT TIME they NEED IT. Get a life. Propagandized advertising is killing the planet. We do not need Mad Men. Never really did. You hurt the economy more than you help it. Learn REAL social responsibility. Advertising that only exists because a producer want to try to use money to buy market share is why we have FB and a massive problem with human invasion of other human’s privacy. “Well, it might work, if everything went the right way, and you could balance the Empire State Building on it’s flag pole, a model anyway, …” Now ask, what does all that have to do with … money? … a useful economy that makes sense? … needs and plans driven, like the way everyone says things would be better if that was the way we did them … who needs to advertise for help with current, steady employment that you could see coming as you grew into it; like people during the guild and crafts golden ages of the Renaissance. Is there a choice to be had in how we move forward from what we’ve achieved to date?
Economics Clue: If BitCoin, or any other solution to social concerns that has it’s own scheduled end-of-life planned well before its user’s the end of need, or that requires the complete waste of energy and resources to create hash strings that themselves are a waste of energy for what they accomplish: the enablement of cybernetic Monopoly money. People used to, and some probably still do, pay real cash for Monopoly money. But, the difference is that you can actually use Monopoly money as a convenient score and tracking system while you play Monopoly with actual physical pieces. Bitcoin are all the same, and the game would be no fun. You’d need to re-create physical Monopoly money to be able to play, or have one hell of a Monopoly Accounting App to track with. But the, you couldn’t hide some of your money under the edge of the board so nobody else could see how much funding you really had to pay rent or buy property. Bitcoin is monopoly money that can’t really be used to play Monopoly. It’s a lark, or you are a moron, not an engineer. Go to school! Use your functional abilities as a human, and engage your brain.
FedNow is a case study, and another deja vu, all over again experience.
FAQ: … the Board has determined that the Federal Reserve should take two actions to support widespread adoption of ubiquitous, safe, and efficient faster payment
services in the United States.
- First, the Federal Reserve Banks (the Reserve Banks) will develop the FedNowSM Service, a new interbank 24x7x365 real-time gross settlement (RTGS) service with integrated clearing functionality, to directly support the provision of end-to-end faster payment services by banks (or their agents).
- Second, the Federal Reserve will explore the expansion of hours for the Fedwire Funds Service and the National Settlement Service (NSS), up to 24x7x365, subject to further analysis of relevant operational, risk, and policy considerations, to support liquidity management in private-sector RTGS services for faster payments, as well as provide additional benefits to financial markets beyond faster payments.
Both of these actions would modernize the Federal Reserve’s payment and settlement services, helping foster the development of faster payment services and improvements to the broader U.S. payment system.
Press Release August 05, 2019
Federal Reserve announces plan to develop a new round-the-clock real-time payment and settlement service to support faster payments
For release at 1:30 p.m. EDT Share
The Federal Reserve Board on Monday announced that the Federal Reserve Banks will develop a new round-the-clock real-time payment and settlement service, called the FedNow℠ Service, to support faster payments in the United States.
The rapid evolution of technology presents a pivotal opportunity for the Federal Reserve and the payment industry to modernize the nation’s payment system and establish a safe and efficient foundation for the future. The Federal Reserve believes faster payment services, which enable the near-instantaneous transfer of funds day and night, weekend and weekdays, have the potential to become widely used and to yield economic benefits for individuals and businesses by providing them with more flexibility to manage their money and make time-sensitive payments.
Since its founding more than a century ago, the Federal Reserve has provided payment and settlement services, alongside and in cooperation with the private sector, as part of its core function of promoting an accessible, safe, and efficient U.S. payment system. The Federal Reserve has established over its history a broad reach as a provider of payment and settlement services to the more than 10,000 financial institutions across the country. That reach will help the FedNow Service support a nationwide infrastructure on which the financial services industry may develop innovative faster payment services for the benefit of all Americans.
“Everyone deserves the same ability to make and receive payments immediately and securely, and every bank deserves the same opportunity to offer that service to its community,” said Federal Reserve Board Governor Lael Brainard. “FedNow will permit banks of every size in every community across the country to provide real-time payments to their customers.”
In 2018, the Board requested public comment on potential services that could be developed by the Federal Reserve to support faster payments. Of the more than 350 comments that took a position on whether the Federal Reserve should develop a new service for faster payments, over 90 percent supported the Federal Reserve operating a round-the-clock real-time payment and settlement service alongside services provided by the private sector.
The Board is now requesting comment on how the new service might be designed to most effectively support the full set of payment system stakeholders and the functioning of the broader U.S. payment system. The Board anticipates the FedNow Service will be available in 2023 or 2024.
In addition, the Board is announcing its intention to explore the expansion of Fedwire Funds Service and National Settlement Service hours, up to 24x7x365, to facilitate liquidity management in private-sector real-time gross settlement services for faster payments and to support a wide range of payment activities, beyond those related to faster payments.
The Board’s Federal Register notice and a list of frequently asked questions are attached. Comments are requested within 90 days of publication in the Federal Register, which is expected shortly.
For media inquiries, call 202-452-2955