There’s absolutely no doubt that our financial system is in flux right now. We’re watching a storm approach, and it’s about to envelop the entire nation in chaotic conditions. If you think things are crazy now, just hang on to your halo…it’s about to get a whole lot worse.
Remember how we talked about CBDCs a few weeks ago, and lots of people in the comments said never, no way, and heck no? Well, unfortunately, it’s being rolled out and soon.
Of course, they’re not calling it CBDCs. Not yet.
It’s under another name, and it’s not quite a federal digital currency. I’m sure this, too, will be called a conspiracy theory, but the Federal Reserve is launching FedNow, an instant digital payment system. This in itself is not a Central Bank Digital Currency, but it puts into place the framework needed to make the idea a reality.
FedNew will be launched in July, according to a press release from the Federal Reserve.
On March 15th, in the midst of the banking collapses, the Federal Reserve issued a press release detailing a new instant payment system that will be launched in July.
That system is called FedNow. Here’s what they said about it.
The first week of April, the Federal Reserve will begin the formal certification of participants for launch of the service. Early adopters will complete a customer testing and certification program, informed by feedback from the FedNow Pilot Program, to prepare for sending live transactions through the system.
Certification encompasses a comprehensive testing curriculum with defined expectations for operational readiness and network experience. In June, the Federal Reserve and certified participants will conduct production validation activities to confirm readiness for the July launch.
This has all the hallmarks of a government strategy. First, they offer it as a “convenience” or a “safety measure.” Lots of people will jump on board in order to take advantage of this.
Of course, we’ve heard this song before.
Next, it will be pushed harder, and those who don’t adopt it will be mocked, thought of as backward, and treated with suspicion. After that, it’ll be darn near impossible to do anything without it. Sound familiar?
The Federal Reserve Banks are developing the FedNow Service to facilitate nationwide reach of instant payment services by financial institutions — regardless of size or geographic location — around the clock, every day of the year. Through financial institutions participating in the FedNow Service, businesses and individuals will be able to send and receive instant payments at any time of day, and recipients will have full access to funds immediately, giving them greater flexibility to manage their money and make time-sensitive payments. Access will be provided through the Federal Reserve’s FedLine® network, which serves more than 10,000 financial institutions directly or through their agents.
This Is NOT The Digital Dollar…Yet.
So let me be perfectly clear. This, in itself, is not the implementation of CBDCs. Instead, it’s the payment network needed to implement CBDCs. An infrastructure, in a manner of speaking.
There’s a clear benefit to the system that will make people want to participate, especially those who do business online or who transfer large amounts of money. Who wouldn’t want the proceeds from the sale of their home to be instantly available?
This is just the system that allows payments to be made via a federal government network using existing banks. FedNow could quickly lead to FedCoin and it wouldn’t take much effort at all.
There Is A Precedent For Federal Payment Networks Turning Into Federal Digital Currency.
Just last week, Marie wrote about the digital identity service that is funded by the US and is being used in Ukraine. It’s a mechanism of digital control, plain and simple, being portrayed as something to make the lives of Ukrainians easier.
But that’s not the only digital program out there we need to be concerned about as a precedent. A writer for the website BeinCrypto reported several other incidences that could show us our future:
There Is A Precedent For Federal Payment Networks Turning Into Federal Digital Currency.
Just last week, Marie wrote about the digital identity service that is funded by the US and is being used in Ukraine. It’s a mechanism of digital control, plain and simple, being portrayed as something to make the lives of Ukrainians easier.
But that’s not the only digital program out there we need to be concerned about as a precedent. A writer for the website BeinCrypto reported several other incidences that could show us our future:
According to global data, the instant payments ecosystem was valued at $100 trillion in 2021. And Asian countries like India and China are leading the sector, with the U.S. slightly late to join the club.
India employs a payment infrastructure based on the Immediate Payment Service (IMPS) and Unified Payment Interface (UPI) to offer instant payment services to customers and merchants. Global data show India is the most active market, with transaction volume hitting $39.8 billion in 2021. With that, India has expanded its e-rupee pilot as part of its CBDC trials.
China, which ranks second in that category, has widely used Alipay and WeChat for instant mobile payments. The nation has also pushed to adopt a digital yuan as its centrally-backed digital currency.
So, to be clear…they instituted instant payment services, then a federal digital currency followed shortly thereafter.
Infrastructure.
Introduction.
It’s a pattern.
The Department of the Treasury has a “CBDC Working Group” exploring the feasibility of the project. It is coming. And they’re being completely open about it. Here’s some information from the Dept. of Treasury website:
CBDC is one of several options for upgrading the legacy capabilities of central bank money. Another is real time payment systems: The Federal Reserve has indicated that it expects to launch the FedNow Service this year, which will be designed to allow for near-instantaneous retail payments on a 24x7x365 basis, using an existing form of central bank money (i.e., central bank reserves) as an interbank settlement asset. In contrast, a CBDC would involve both a new form of central bank money and, potentially, a new set of payment rails. Both real time payment systems and CBDCs present opportunities to build a more efficient, competitive, and inclusive U.S. payment system.
In the United States, policymakers are continuing to deliberate about whether to have a CBDC, and if so, what form it would take. The Fed has also emphasized that it would only issue a CBDC with the support of the executive branch and Congress, and more broadly the public.[3] Even as policy deliberations continue, the Fed is conducting technology research and experimentation to inform design choices so that it is positioned to issue a CBDC if it were determined to be in the national interest.
The entire article bears reading. You will have no further doubt this is the plan when you do.
They also mentioned that this will help us to do business with other countries that have CBDCs.
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