Awake-In-3D The FedNow Rollout and Its Implications for a US $CBDC
Awake-In-3D
The FedNow Rollout and Its Implications for a US $CBDC
On July 22, 2023 By Awake-In-3D
In CBDCs and Digital Finance, RV/GCR Articles
The future of the U.S. Dollar is likely being reshaped through FedNow, an innovative payment system operating on a Unified Digital Ledger. As this brand new digital Payment Service gains momentum, questions arise about its potential as a foundation for a Central Bank Digital Currency (CBDC) for the United States.
Here I discuss the convergence of FedNow and the prospects of a U.S. Dollar CBDC, where the boundaries between traditional and digital currencies blur. Will this transformative leap forward lead to enhanced financial efficiency, or is it a stepping stone towards a new era of surveillance and control? We should all understand the pivotal role of FedNow in shaping the future of the U.S. Dollar and the potential implications for our monetary landscape.
On July 20th, 2023, the Federal Reserve launched FedNow, a new money transfer system, with 35 participating banks across the country. JPMorgan Chase and Wells Fargo are among the early adopters, but notable exclusions are Citigroup and Bank of America. The U.S. Treasury has also signed up for FedNow. To use the service, both the sending and receiving banks must be part of the system. A total of 353 banks and credit unions have signed up for the Real-Time Payments (RTP) service and both the sending and receiving banks need to be signed up for the system to use FedNow. All participating banks and financial institutions will use the ISO 20022 messaging standard to communicate payment information among each other.
FedNow Payment System Supports the CBDC Agenda
The launch of FedNow, a payment gateway by the Federal Reserve, raises concerns about the infrastructure for rolling out Central Bank Digital Currencies (CBDCs). Early adopters, including diverse financial institutions, processors, and the U.S. Treasury, have expressed their intent to useFedNow.
The gradual adoption of FedNow could lead to increased pressure and dependence on the system, resembling a government strategy. The FedNow Service aims to provide nationwide instant payment services, allowing businesses and eventually individuals to send and receive payments at any time.
While FedNow itself is not a CBDC, its existence raises concerns about the platform’s potential use for implementing CBDCs and its impact on personal freedom.
To transition to a digital currency, a national financial infrastructure must link accounts from all banks. The system must be fast and convenient to encourage user adoption and overcome skepticism. Efforts will be made to incentivize voluntary adoption, offering generous deals and convenient features. Once the system is established and functioning smoothly, the central bank may devalue physical cash, encouraging people to trade it for digital currency.
Will CBDCs Become Reality?
CBDCs will operate on a digital unified ledger, which is a centralized system that records and verifies transactions. This ledger, often referred to as a blockchain or digital ledger technology, serves as a secure and transparent database that tracks the issuance, transfer, and ownership of digital currency units.
With CBDCs running on a digital unified ledger, central banks have real-time visibility into transactions, enabling efficient monitoring and regulation. This technology ensures the integrity and traceability of transactions while potentially streamlining processes and reducing costs associated with traditional financial systems.
The worry arises when digital currency becomes the sole option, raising concerns about control and limitations. A digital currency could enable controls like automatic taxation and restrictions on purchases, easily implemented electronically.
Justification for Implementation? The BIS and IMF suggest that transitioning to an electronic money standard could lead to lower inflation and the ability to manage the economy effectively.
However, CBDCs do not address the underlying debt collapse of our current fiat monetary system. Any digital currency not backed by gold and other tangible assets are still fiat currencies in repackaged form. This “same currency in a new dress” won’t prevent the federal government from bankruptcy when its unsustainable debt system comes crashing down.
Only Our GCR can clean the slate and bring economic fairness, balance and prosperity to a world of out-of-control Elitists and Banksters.
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