(by Capstone Report) – The Federal Reserve is launching a new, faster payment system that will modernize how financial institutions move money. The 1970s Automated Clearing House (ACH) might soon find itself a dinosaur as the Fed launches FedNow—a rapid system that the Wall Street Journal reports could set the stage for a digital dollar.
According to the WSJ, “The extent to which FedNow is successful could help determine whether the Fed decides to move forward with a central bank digital dollar over the coming years. Unlike private cryptocurrencies such as bitcoin, a Fed-issued central bank digital currency would be backed by the U.S. central bank, just like the Fed backs physical currency.”
The digital dollar or FedCoin or whatever term of art is finally adopted will have similarities to crypto already on the market—for example Bitcoin. And crypto provides a myth of privacy; however, as the New York Times reported, the federal government has proven they can trace crypto payments.
The digital dollar is the dream of America’s autocratic class. Democrats attempted to insert a digital dollar into Covid stimulus bills.
Why do America’s would-be 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. According to reports, it allows the central bank greater control over the economy. According to one source, “The Keynesian dream to boost the velocity of money may finally come true. China is exploring expiration dates with its upcoming digital yuan, or DCEP, which means the currency will expire if not used in a certain timeframe…thus forcing consumers to use it up by a certain date.” Read Full Article >