A low cost, inclusive and transparent ecosystem for cross-border payment is the goal, the roadmap called by the G-20. 19 key steps have been outlined by the FSB that will help in improving, assessing and implementing new technologies.
According to Powell, the FEDnow system should be the backbone of the ecosystem, especially with a seamless operation and improved payment integrity and data security.
Speculatively, the new date for debuting the FEDnow, is likely to be late 2023 or 2024.
The Fed is also doing its part to examine the role of new technologies. Experiments with central bank digital currencies are being conducted at the board of governors. As well as complementary efforts like the Federal Reserve Bank of Boston in collaboration with researchers at MIT.
The Private sectors have the capacity to enhance the outreach of users of the financial system. Improving the financial system is a collective effort, so the digitization of the financial service could be the key to the unbanked.