Discover more from Cashless: Central Bank Digital Currency and China in Perspective
INFOGRAPHIC: FedNow is "better late than never."
The US is adopting decade-old tech and selling it as new.
FedNow launched in the US and I should be happier!
First of all, I like FedNow and am pleased that it’s here. The old saying “better late than never” was never more true!
Today rather than write a lot about FedNow, I wanted to try something new and put together a special presentation that is far more visual than my regular writing here on Substack. Dare I call it an infographic? Every once in a while, it's good to keep things fresh, right?
India’s UPI is the “gold standard”
FedNow isn’t bad, but from the start, it’s no UPI as used in India. India’s UPI is the “gold standard” for retail RTGS systems. Got it? Only Brazil’s Pix even comes close!
UPI is the standard by which all others are measured because it is designed to make payment a “public good.” It was designed for everyone to use, like a CBDC.
This is illustrated in the biggest difference between UPI and FedNow. UPI can be used without a bank, while FedNow cannot and is tied directly to your bank.
So, to be honest, I like FedNow but think that the Fed could have done more with it if it thought a bit more like India’s Reserve Bank! An opportunity was lost with this rollout of a payment system behind India and Brazil’s.
Some may wonder why I didn’t mention Alipay or WeChat Pay as comparisons with FedNow. The reason is that both of China’s payment platforms are privately owned and more like a Zelle or PayPal than a gov’t supported system like FedNow or UPI.
So yes, I like FedNow, but we should have had it years ago!
Enjoy the infographic!
Rich Turrin is the international best-selling author of "Cashless - China's Digital Currency Revolution" and "Innovation Lab Excellence." He is number 4 on Onalytica's prestigious Top 50 Fintech Influencer list and an award-winning executive previously heading fintech teams at IBM following a twenty-year career in investment banking. Living in Shanghai for the last decade, Rich experienced China going cashless first-hand. Rich is an independent consultant whose views on China's astounding fintech developments are widely sought by international media and private clients.
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