Federal Reserve Fedwire Goes Offline Preventing Banks from Completing Transactions
It seems that the US Federal Reserve Bank’s real-time settlement system has gone offline for a few hours on April 12.
This has affected banks that couldn’t process some transactions. At the same time, it shows how important decentralized systems can be.
FED’s Settlement System Goes Offline
According to users on different social media, the Fedwire, the real-time settlement system that is operated by 12 Federal Reserve banks in the US, went offline for some minutes on April 2. The information was released by a Reddit user a few hours ago.
Today the United States Federal Reserve experienced an unexpected issue and went completely down. No incoming or outgoing wires went through in the entire country. It’s is still unresolved and yet not one single news outlet seems to be reporting on this and the massive impact it has. from news
As the user explained, the FED experienced an unexpected issue and went completely down. This has paradoxically happened the same day as Bitcoin (BTC) surged more than 15% and moved away from the bear trend in which it was since January 2018.
At the time of writing this article, the website that monitors the current status of the services of eh FED, reveals that there is not a problem in the network. However, a few hours ago, there was a service disruption with Fedwire funds and national settlements.
The FED uses the Fedwire in order to settle payments in real time for USD payments. The system is currently being operated by 12 Federal Reserve Banks in the United States. The FED has a massive network for payment processing that includes a large list of banks and other participants.
It is worth mentioning that Fedwire processed $2.8 trillion on a daily basis in January 2019, when Bitcoin was able to transfer just $3.2 trillion in the whole of 2018. Fedwire plays an important role in the payment sector in the United States.
There are many partners that are working with the service and that they need it to process live transactions. With the service offline, transactions couldn’t be processed and some of them were delayed.
The Redditor that reported the issue explained:
“I work in a job that requires wire transfers and all wires were not sent or received after about noon/1 ish west coast time. I assume most people weren’t as aware because of the typical cutoff time anyway. But we had several deals today that couldn’t be completed because none of the banks could send us money and we couldn’t send any out either.”
There does not seem to be an explanation about this issue or what affected the network. With a decentralized system such as the one of Bitcoin (BTC) it might be possible to solve some of these issues and make the network work in a more efficient and better way. At the same time, Bitcoin has been running for over 99.98% of the time compared to other systems and platforms.
Currently, each Bitcoin can be purchased for $4,750 and it has a market capitalization of $83 billion.