Posted 2 years ago | by Ben Armstrong

US ACH Clearing Network Breaks – Cryptos Could Help

The FED's Automated Clearning House (ACH) network is the backbone of the US direct deposit system, and for the second time in a year, it just broke. The outage happened in the lead-up to the Christmas season, when people need access to their direct deposits the most.

According to Jean Tate (via Bloomberg), a spokeswoman at the Atlanta Fed:

“The FedACH service … is currently operating normally after experiencing delays in processing yesterday afternoon and early this morning. Some customers experienced delays in receiving confirmations of yesterday’s transactions. Federal Reserve technical staff continue to investigate the root cause of the issue.”

The impact of even a short-term delay in processing payments through the ACH network had a major impact on the east coast of the USD, where most of the outages were reported. In the absence of the existing banking infrastructure, it is impossible for people to send money with the banking system, and this is a big concern.

The ACH Network Breakdown is a Warning

When an piece of banking infrastructure like the ACH network breaks, there are going to be calls from the crypto sphere over how shaky the existing financial system is.

Here is one more.

There have been a number of reassurances from officials in the wake of the latest breakdown. Of course, some were quick to point out that Bitcoin's blockchain couldn't come close to the kind of transaction speeds/volume that the ACH network handles.

It is worth pointing out that Bitcoin was the first-ever decentralized blockchain, and was in no way designed to replace, or even compete with infrastructure like the ACH network. The simple fact is that these vital pieces of banking infrastructure aren't perfect, and due to the monopoly that the central / money center banks have over the financial system, we have no 'Plan-B'.

Money is More Than Money

Governments originally had the power to regulate money so they could ensure the fitness of the metal that circulated as currency in the nation. Those days are long gone, and now money is a political and economic tool in systems that have no basis in history.

This time the ACH network went down for technical reasons, but there is nothing that says the banking system is a right that everyone has the ability to use. Governments routinely use the financial system to influence other nations, but these same tactics could be used on the domestic population as well.

When it comes to politics, cryptos support no nation. In that sense, they are already far superior to any fiat currency.

About Ben Armstrong

ef4f73e9ddeb61becab57469962fa946?s=90&d=blank&r=g US ACH Clearing Network Breaks – Cryptos Could HelpBen Armstrong is a YouTuber, podcaster, crypto enthusiast, & creator of Better known as BitBoy Crypto, he works hard to educate and inform the crypto community.

Ben has been involved with the world of cryptocurrency since 2012 when he first invested in Bitcoin. He used Charlie Shrem's BitInstant & lost Bitcoin in the Mt. Gox hack.

In 2018, Ben decided to go "full-time crypto" and focus all of his time and energy into expanding the reach of crypto.

If you have any questions or comments please feel free to email him at or contact him on Twitter @BitBoy_Crypto.