Of all the articles on the instant payment service, this one is simultaneously the most honest and hilarious (<a href="https://www.wsj.com/articles/banks-newest-fed-headache-nonstop-instant-payments-8ac97c15" rel="nofollow noreferrer">https://www.wsj.com/articles/banks-newest-fed-headache-nonst...</a>)<p>> FedNow could destabilize banks’ reliance on customer cash, fanning the flames of deposit flight<p>> In addition to losing revenue from the time between a payment’s initiation and settlement, banks now have to worry about deposit flight outside of business hours.<p>> The system isn’t expected to be ubiquitous in the U.S. for a few years.<p>> ...customer deposits were sticky ...That assumption allowed bankers to comfortably borrow cash at low rates and lend for long periods at higher rates.<p>> But instantaneous transactions allow customers to pull cash with ease, and without notice. That threatens smaller banks...<p>Meanwhile, the rest of the world, including countries traditionally referred to as "third-world countries," have leapfrogged the US and provide instant payment and settlement without crying about the loss of revenue from the time between initiation and settlement, or a run on their banks.