Which of the following is an example of an RTGS payment system?

The choice of Fedwire as an example of an RTGS (Real-Time Gross Settlement) payment system is accurate because it specifically facilitates the immediate transfer of funds between banks in the United States. Fedwire operates in real-time, meaning that transactions are settled instantly and on a gross basis, which means each transaction is settled separately without netting debits against credits.

RTGS systems are designed to ensure the high-value, time-sensitive transactions are processed swiftly and securely, minimizing systemic risk in the financial system. Fedwire exemplifies this by being a central bank-operated system that provides a reliable infrastructure for large-dollar payments, allowing for the transfer of funds with finality and certainty.

In contrast, the other options represent different types of payment systems that do not operate under the RTGS model. The SWIFT Network, for instance, is primarily a messaging service that facilitates international transactions but does not settle payments in real time directly. Bitcoin operates on a decentralized cryptocurrency framework that does not follow traditional banking processes and has variable settlement times. PayPal, while a popular digital payment platform, does not function as an RTGS system either, as it typically processes payments on a net basis rather than gross real-time settlements.

Thus, Fedwire is the correct answer as it