June 11, 2019
Understanding Real-Time Payment Systems — And Why the Fed Should Not Create Another
A real-time payment system presents considerable advantages for both individuals and the economy as a whole, and U.S. companies are actively moving in that direction. Meanwhile, the Fed appears poised to create its own real-time payment system. As AAF’s Director of Financial Services Policy Thomas Wade notes, this may very well be an inappropriate expansion of the regulator’s role.
Were the Fed to develop its own real-time payments platform, it would be costly, time consuming, duplicative, discourage competition, slow down the progress of development of real-time services, and likely be unsupported by the Fed’s own mandate. Unless the Fed can demonstrate that there has been a market failure, a decision to proceed would be entirely without basis.