'Real-time payments' could mean you would get $1,200 stimulus check 'IMMEDIATELY' once they are sent
AMERICANS could receive their $1,200 stimulus check immediately after being issued if the Federal Reserve were to create a proposed real-time payment system to digital wallets.
Under a federal law enacted in 1987, checks issued by the Treasury Department were to be available for withdrawal within two business days – which didn’t account for weekends and holidays.
In 2019, progressive congresswoman Ayanna Pressley introduced a bill – later signed into law by President Donald Trump – that amended the 1987 Expedited Funds Availability Act to indicate payments from the Federal Reserve should be able to be withdrawn “in real time.”
The law also called on the Feds’ Board of Governors to create a real-time payment system that would allow for instant payments.
The Fed responded by introducing the FedNow system which is estimated for launch in 2023 or 2024, according to the Federal Reserve website.
“The FedNow Service will be deployed in phases so that the initial service can be launched expeditiously, with additional features and enhancements released in stages after the initial launch,” the website reads.
Democrat Maxine Waters, Chairwoman of the House Financial Services Committee, called on the Fed to increase prompt payments in response to the coronavirus pandemic in a March statement.
“The global spread of the novel coronavirus has adversely impacted the lives of millions of Americans, the economy and the financial system. This is in many ways an unprecedented crisis which calls for extraordinary federal response,” Waters said.
The congresswoman has also proposed a digital wallet system to the Feds existing FedAccounts platform that would provide consumers who have never opened a bank account with banking services, including ATM cards and the ability to cash checks without paying banking fees.
The proposed FedAccounts digital wallet, as proposed by Waters, would also create a partnership between the Federal Reserve and the U.S. Postal Service to provide banking services at some USPS locations where there’s no nearby Federal Reserve bank.
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