The Federal Reserve published an article on its official website to answer common questions about the real-time payment system FedNow. The Fed said that FedNow is not a CBDC and FedNow has nothing to do with digital currency. FedNow is a payment service provided by the Federal Reserve for banks and credit unions. It is similar to other payment services of the Federal Reserve, such as Fedwire and FedACH. The FedNow service is neither a form of currency nor a step to eliminate any form of payment, including cash. The FedNow service is an instant payment service provided by the Federal Reserve and will be launched in July 2023. The Federal Reserve has not yet decided to issue a CBDC. The Federal Reserve will not issue a CBDC without the explicit support of Congress and the executive branch, preferably in the form of specific authorization laws. CBDC will not replace cash or other payment methods.
