On November 3rd, one of the Federal Reserve’s payment systems experienced an outage, leading to several major U.S. banks being unable to process customer deposits. The issue was attributed to a “processing problem” within the Automated Clearing House (ACH), a widely-used payment processing network responsible for depositing wages into employee bank accounts, operated by the Federal Reserve Banks and the Electronic Payment Network.
While the Federal Reserve assured that customer accounts remained secure and that services were resumed, customers reported ongoing problems. Some individuals, facing delayed payments, raised concerns about meeting their financial obligations, including rent and bills.
![US Workers Hit by Paycheck Delays Due to Fed Payment System Bug image 16](https://i0.wp.com/nosisnews.com/wp-content/uploads/2023/11/image-16.png?resize=1024%2C259&ssl=1)
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The outage underscored the vulnerabilities of traditional financial systems, leading some to advocate for Bitcoin as a solution to such issues. They argued that Bitcoin’s decentralized and permissionless nature could prevent disruptions like these, where centralized entities control the flow of funds.
A CNBC survey from September revealed that a significant percentage of Americans are living paycheck to paycheck, with financial instability affecting a growing number of people.
The outage reports began surfacing around 11:00 am UTC on November 3, affecting banks like Bank of America, Chase, and Wells Fargo. Each of these banks experienced peaks in outage reports during the incident.
![US Workers Hit by Paycheck Delays Due to Fed Payment System Bug image 17](https://i0.wp.com/nosisnews.com/wp-content/uploads/2023/11/image-17.png?resize=1024%2C420&ssl=1)
![US Workers Hit by Paycheck Delays Due to Fed Payment System Bug image 17](https://i0.wp.com/nosisnews.com/wp-content/uploads/2023/11/image-17.png?resize=1024%2C420&ssl=1)
It’s worth noting that the Federal Reserve introduced the FedNow service in July, which allows banks and money transmitter services to make instant payments without relying on the ACH. Such initiatives aim to enhance the efficiency and reliability of payment systems, but the recent outage highlights the importance of ongoing efforts to ensure the resilience of financial infrastructure.
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