(via Capstone Report) – The Federal Reserve is launching a new, faster payment system that will modernize the way financial institutions move money. The Automated Clearing House (ACH) of the 1970s may soon find itself a dinosaur as the Fed launches FedNow, a fast system that the Wall Street Journal says could set the stage for a digital dollar.
According to the WSJ, “The degree of success of FedNow could help determine whether the Fed decides to move forward with a central bank digital dollar in the coming years. Unlike private cryptocurrencies like bitcoin, a central bank digital currency issued by the Fed would be backed by the central bank of the United States, just as the Fed backs physical currency.”
The digital dollar or FedCoin or whatever term of art is eventually adopted will have similarities to crypto already on the market, for example Bitcoin. And cryptography provides a myth of privacy; however, as the New York Times reported, the federal government has proven they can track crypto payments.
The digital dollar is the dream of America’s autocratic class. Democrats tried to insert a digital dollar into the Covid stimulus bills.
Why do US autocrats want a digital dollar? Because a digital dollar would increase their control.
China is leading the cryptocurrency push with its own entry: the digital Yuan. It reportedly allows the central bank greater control over the economy. According to one source, “The Keynesian dream of increasing the velocity of money may finally come true. China is exploring expiration dates with its upcoming digital yuan, or DCEP, meaning the currency will expire if not use in a certain period of time… thereby forcing consumers to use it on a certain date. Read the full article >