The Federal Reserve has announced the anticipated pricing for its FedNow service for instant payments, a press release says.
The service will include a $25 monthly participation fee for every routing transit number enrolling in the service. Then there will be a $0.045 per credit transfer and one cent for a RFP message to be paid by the requestor.
The limit for the credit transaction values will be $500,000, though participants will have a default limit of $100,000. It will have options to adjust up or down.
The release says the Fed will look at the credit transfer limit on an ongoing basis and adjust it when appropriate.
The Fed says the new service will provide support for instant payments for financial institutions and service providers.
“We are providing broad information about our pricing approach well in advance of our 2023 launch to support financial institutions and their service providers as they plan for implementation of the FedNow Service,” said Ken Montgomery, Federal Reserve Bank of Boston interim president, chief executive officer and FedNow program executive. “Industry input will continue to help us respond to instant payment needs, further frame out our pricing approach and move toward service launch.”
PYMNTS wrote that the Fed recently dropped its long-awaited central bank digital currency report, which doesn’t advocate either for or against the creation of a new digital dollar. Rather, the intention was to take the first step in a “public discussion.”
The digital dollar would be “a digital liability of a central bank that is widely available to the general public,” the report said.
“In this respect, it is analogous to a digital form of paper money,” the report said.
The digital dollar would not be issued by the Fed directly, and a CBDC would likely be built on blockchain technology.