Because of the Fed's fiscal agency responsibilities, it is expanding its scope of applications. The US. Treasury is currently developing a system to make greater use of the Fed Wire to execute large-dollar government transfers. In addition, the Fed is studying the feasibility of distributing Social Security payments via the Fed Wire.

The pace and extent of this expansion through the system will depend upon available technical capabilities. The paperless entries are being dispatched to the reserve bank offices as data streams encoded on magnetic tape. Reserve system technicians are presently working to provide the necessary standards and procedures for transmitting entries by means of the Fed Wire. This venture is the forerunner of a larger operation. Other government agencies, including the military, are expected to participate in similar programs leading eventually to a nationwide electronic funds transfer system throughout the Federal Government. These programs will substantially reduce both the cost of making government payments and the risk that payments will be lost by theft or fraud. At the same time, delivery of payments will be faster.