FedNow: A Threat to Crypto and Civil Liberties?
👋Hello, dear reader! Do you know what FedNow is? If not, you might want to pay attention, because it could have a huge impact on your financial freedom and privacy.😱
FedNow is a new payment system that the Federal Reserve plans to launch in July 2023. It will allow instant and free transfers of money between banks, businesses, and consumers. Sounds good, right? Well, not so fast.🤔
Some prominent figures, such as Robert F. Kennedy Jr. and Ron DeSantis, have warned that FedNow is actually a “broadside against crypto” and a step towards a central bank digital currency (CBDC). They argue that FedNow will give the government more control over your money and data, and undermine the innovation and freedom that crypto offers.😡
What is FedNow?
FedNow is a real-time gross settlement (RTGS) system that will operate 24/7/365. It will enable banks to send and receive payments of up to $25,000 within seconds, without intermediaries or fees. The Fed claims that FedNow will improve efficiency, security, and inclusion in the payment system.👍
However, FedNow is not related to digital currencies, according to the Fed. It will use existing accounts and infrastructure, and will not create new forms of money or liabilities. The Fed also denies that FedNow is a precursor to a CBDC, which would be a digital version of the US dollar issued by the central bank.🙅♂️
Why are RFK Jr. and DeSantis against FedNow?
Robert F. Kennedy Jr., a Democrat environmental lawyer and anti-vaccine activist, has been vocal about his opposition to FedNow. He believes that FedNow is part of the Biden administration's anti-crypto agenda, and that it will pave the way for a CBDC that will erode civil liberties.😨
He agrees with former Coinbase executive Balaji Srinivasan that FedNow and CBDC will allow the government to track, tax, censor, confiscate, and devalue your money at will. He also fears that FedNow and CBDC will eliminate cash and private cryptocurrencies, leaving you with no alternative but to use the government-controlled digital money.😰
Ron DeSantis, a Republican governor of Florida and a potential presidential candidate in 2024, has also expressed his concerns about FedNow and CBDC. He speculates that the government could use FedNow and CBDC to impose negative interest rates, social credit scores, or vaccine mandates on the public. He also questions the need for FedNow when there are already private sector solutions for fast and cheap payments, such as crypto.😎
Are they right?
Not everyone agrees with RFK Jr. and DeSantis. Some current and former banking officials have dismissed their comments as inaccurate or exaggerated. They argue that FedNow is not a threat to crypto or civil liberties, but rather a complement or a competitor.🤷♂️
They point out that FedNow will not create new money or liabilities, but simply transfer existing ones faster and cheaper. They also note that FedNow will not eliminate cash or crypto, but rather coexist with them as different options for different needs. They also stress that FedNow will not enable more surveillance or control than what already exists in the current payment system.👌
What does this mean for crypto?
So, is FedNow a friend or a foe of crypto? The answer may depend on your perspective and preferences.😉
Some crypto enthusiasts may see FedNow as a rival or a risk to crypto, as it could reduce the demand or the value of crypto as a payment method. They may also worry that FedNow could be used as a tool to regulate or restrict crypto activities.😒
Others may view FedNow as a catalyst or a challenge for crypto, as it could increase the awareness or the adoption of crypto as a store of value or an investment vehicle. They may also hope that FedNow could inspire more innovation or competition in the crypto space.😊
What do you think? Do you support or oppose FedNow? Do you think it will help or hurt crypto? Let us know in the comments below!👇
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