US Fed Questions Feasibility of Global Instant Payment System Interlinking

Federal Reserve Governor Christopher Waller highlights legal, compliance, and operational challenges in cross-border payment connectivity.

• Waller casts doubt on the practicality of interlinking domestic fast payment systems globally.
• He emphasizes that not all frictions in the payment system are negative, citing compliance and risk management.
• The US is focusing on expanding its domestic FedNow instant payment network, currently connecting 1,000 institutions.
• Previous bilateral payment system linkages, like the ACH service to Europe and Canada, saw limited success.
• Waller underscores the need for a multilateral approach to address the complexities of global payment interlinking.

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