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The FedNow program is drawing the ire of both presidential hopefuls, who believe that it is the stepping stone to a central bank digital currency (CBDC).
FedNow First Step To CBDC?
The Federal Reserve has claimed that FedNow would not be used as a jumping-off point for a CBDC. However, Democratic politician Robert F. Kennedy Jr. dismissed these claims via a tweet, where he elaborated his take on the matter,
“The claim that FedNow is not the first step toward a CBDC would be more easily digestible were we not aware of the Biden administration’s steady barrage of hostile broadsides against cryptocurrencies.”
Both Kennedy and DeSantis have expressed their displeasure against the Federal Reserve’s upcoming payments system, FedNow. The Florida governor had previously stated his stance by proposing a bill to block CBDC.
On the other hand, Kennedy believed that the FedNow program would pave the way for a central bank digital currency. According to both lawmakers, a CBDC would greatly undermine citizens’ right to privacy and lead to increased social surveillance and control; therefore, they have been rallying against the introduction of a digital dollar in the U.S. monetary landscape.
“White House Colluded With Banksters”
Kennedy also pointed out that from 2008 to 2022, the Federal Reserve had partnered up with a series of major banking institutions to print $10 trillion, which was a “bonanza for the Banksters.” He further argued that cryptocurrencies, like bitcoin, give the public an alternative solution in the aftermath of the inevitable bubble burst.
Kennedy pointed fingers at the White House for colluding with the banksters to keep U.S. citizens trapped in the bubble of profit and loss, thereby controlling the masses. He claims that CBDCs would be the ultimate mechanism for social surveillance and control, by cutting off crypto exit ramps and alternative rails to strengthen government control over financial and political systems.
He talks about how blockchain expert Nic Carter had pointed out that President Biden has already weaponized the FDIC, OCC, and the DoJ to force crypto-friendly banks to turn away from crypto in 15 separate incidents since December 2022.
“FedNow Is A Virus”
Kennedy also quotes entrepreneur and investor Balaji Srinivasan, who stated,
“The distinction between FedNow and a CBDC is important from a technical standpoint, but not from a civil liberties standpoint…[FedNow is] a virus that has evolved to evade recognition by changing its sequence without really changing its function."
The FedNow program is a 24/7 instant payment system that is scheduled to be launched in July. The payments system is seeking to provide a government-backed service to speed up monetary transfers between financial institutions. Despite the allegations of using this payments program as a launch pad for a CBDC program, the Fed has denied such claims. The central bank has claimed that a CBDC would only happen with the full support of Congress and the executive branch through specific authorizing laws.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.