As per the status reports from the government body’s website, the U.S. Federal Reserve’s payments system has restored operation after a three-hour outage. Due to these outages, various U.S. banks and exchanges announced they could not perform deposits or withdrawals via the Fed’s ACH system. Several cryptocurrency platforms also tweeted that they were encountering issues.
On Feb. 24, several Federal Reserve services were offline, involving Account Services, Check 21, Check Adjustments, FedACH, FedCash, FedLine Advantage, FedLine Direct, FedLine Command, FedLine Web, Fedwire Funds, Fedwire Securities, National Settlement. The first issues started at 11:15 a.m. Eastern Time. However, it could resolve the issues surrounding central bank applications at 2:17 p.m.; and access to FedCash Services by 2:30 p.m. The Federal Reserve also prolonged cash order deadlines to 3:30 p.m. owing to the Outage.
Prominent crypto exchanges face problems owing to the outage
Various crypto exchanges have undergone issues because of the Outage, including Kraken, Binance US, Coinbase, and Gemini. The Outage has limited exchanges from unevenly accepting and making wire payments, ACH payments, and bank transfers. The issue affecting payments service conducted by the U.S. central bank has been resolved, and users may continue regular access, the Fed continued. Nevertheless, it seems that exchanges have not entirely solved the issue on their end and are still encountering delays. This is the second crucial crypto-related Outage of the month; an AWS outage attacked several exchanges on Friday.
The news occurs as the central bank is planning to take a significant responsibility. It is distinctly developing its own same-day settlement payment system named FedNow. Moreover, it will function in direct competition with an industry-run payments system commenced in 2017 by Wall Street banks’ organization. It involves JPMorgan Chase & Co. and Citigroup Inc. The Fed’s network has experienced difficulties before. In 2019, the FedWire interbank funds transfer service went down for about three hours. The Fed stated technical glitch as the reason behind the Outage. However, it failed to give more details.
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