Why Central Banks Care About Payment Systems

Monetary Policy Explained with Fexingo: Central Banks, Money Supply, and Interest Rates · Aug 14, 2026 · 13m · transcript

Central banks don't just set interest rates and print money. Behind the scenes, they run and regulate the plumbing that moves trillions of dollars every day — the payment systems that clear cheques, settle card transactions, and transfer funds between banks. In this episode, Lucas and Luna explore why central banks treat payment infrastructure as a core responsibility, from real-time gross settlement systems to the slow move toward instant payments. They dig into a concrete example: the Federal Reserve's FedNow service, launched in 2023, and how it competes with private networks…