Press Release

AAF Expert Thomas Wade Argues Against a Federal Reserve Real-Time Payment System

The Federal Reserve announced today that it will build its own real-time payments platform. AAF’s Director of Financial Services Policy Thomas Wade has repeatedly detailed the many flaws of this initiative.

“A Federal Reserve real-time payments platform would be costly, time consuming, duplicative, discourage competition, retard progress of existing real-time services, and is likely not consistent with the Fed’s mandate.”

The problems include:

  • A real-time payments system already exists and is expected to have complete coverage by 2020;
  • To participate in, supervise, and regulate this financial system simultaneously is an overwhelming conflict of interest, as demonstrated by the Fed’s participation in the automated clearing house market; and
  • The Fed would need, optimistically, between three and five years to develop, test, and launch this system, at a cost of hundreds of millions of taxpayer dollars.

Wade on this issue:

To schedule an interview with Thomas Wade on this issue, contact Andrew Evans at [email protected] or at 202.370.3446.