Overview:
– One of the Federal Reserve’s payment systems experienced an outage on November 3, causing major U.S. banks to be unable to process customer deposits.
– The bug occurred in the Automated Clearing House (ACH), a widely used payment processing network.
– The ACH is operated by the Federal Reserve Banks and the Electronic Payment Network.
– Despite the Federal Reserve claiming that all services resumed, customers are still reporting issues with receiving their payments.
– Some customers have expressed frustration and suggested that Bitcoin could be a solution to this problem.
– Outage reports from banks started to rise at around 11am UTC on November 3, with Bank of America, Chase, and Wells Fargo being the most affected.
Details:
– The Federal Reserve’s payment system outage on November 3 prevented major U.S. banks from processing customer deposits.
– The bug was specifically in the Automated Clearing House (ACH), which is a payment processing network used by banks and employers to deposit wages into employee bank accounts.
– The ACH is operated by the Federal Reserve Banks and the Electronic Payment Network.
– The Federal Reserve stated that the bug was caused by a “processing issue.”
– The Federal Reserve claims that all of its services were restored at 4:44 pm UTC time, but customers are still experiencing delays in receiving their payments.
– Despite assurances from the banks that customer accounts are secure, some customers are facing financial hardships because of the delayed payments.
– Some customers have taken to social media to express their frustrations and suggest that Bitcoin could serve as a solution to this problem.
– A CNBC survey from September found that 61% of Americans are living paycheck to paycheck, which highlights the impact of payment delays on individuals.
– Outage reports from banks started to rise at around 11am UTC on November 3.
– Bank of America, Chase, and Wells Fargo were the most affected banks, with reports peaking during a 15-minute interval at 4:00 pm UTC time.
– The Federal Reserve launched FedNow in July, a system that allows banks and money transmitter services to make instant payments without relying on the ACH.
[h/t] [coinpostman]
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– [JPMorgan forecasts limited downside for crypto markets: Report](https://coinpostman.com/news/jpmorgan-forecasts-limited-downside-crypto-markets)
– [Unstablecoins: Depegging, bank runs and other risks loom](https://coinpostman.com/magazine/unstable-coins-de-pegging-bank-runs-other-risks-2023)
Sources:
– [Federal Reserve Services Outage](https://frbservices.org/app/status/outage.do?oId=145496)
– [Bank of America Help Twitter](https://twitter.com/BofA_Help/status/1720585488845689016?ref_src=twsrc%5Etfw)
– [LazishLizard Tweet](https://twitter.com/LazishLizard/status/1720472902145896797)
– [Bank of America Stablecoin Adoption](https://cointelegraph.com/news/bank-of-america-says-stablecoin-adoption-and-cbdc-is-inevitable)
– [Downdetector Bank of America Outage](https://downdetector.com/status/bank-of-america/)
– [CNBC Survey: 62% of Americans live paycheck to paycheck](https://www.cnbc.com/2023/10/31/62percent-of-americans-still-live-paycheck-to-paycheck-amid-inflation.html)
– [What is FedNow Instant Payment System](https://coinpostman.com/learn/what-is-fednow-instant-payment-system)
