{"id":19027,"date":"2023-03-22T17:44:30","date_gmt":"2023-03-22T17:44:30","guid":{"rendered":"https:\/\/crowdfundjunction.com\/blog\/us-central-banks-fednow-payment-service-to-launch-in-july-economist-calls-timing-suspicious-economics-bitcoin-news\/"},"modified":"2023-03-22T17:44:30","modified_gmt":"2023-03-22T17:44:30","slug":"us-central-banks-fednow-payment-service-to-launch-in-july-economist-calls-timing-suspicious-economics-bitcoin-news","status":"publish","type":"post","link":"https:\/\/crowdfundjunction.com\/blog\/us-central-banks-fednow-payment-service-to-launch-in-july-economist-calls-timing-suspicious-economics-bitcoin-news\/","title":{"rendered":"US Central Bank\u2019s Fednow Payment Service to Launch in July, Economist Calls Timing \u2018Suspicious\u2019 \u2013 Economics Bitcoin News"},"content":{"rendered":"

(Originally posted on : Bitcoin News )<\/b>
\n<\/p>\n

\n
\n<\/header>\n
\n\n<\/div>\n

According to the U.S. Federal Reserve, the central bank\u2019s Fednow payment service will start operating in July, and participants will be certified in April to leverage the Fednow Pilot Program. Ken Montgomery, the Fednow program executive, is urging American financial institutions to make preparations to join the central bank\u2019s new payment service. Economist Richard Werner, however, believes the timing of the Fednow rollout is \u201csuspicious,\u201d and he suggests that \u201cmaybe it\u2019s all about rolling out\u201d a central bank digital currency (CBDC).<\/strong><\/p>\n

Fednow Payment Service Prepares to Facilitate Instant Payments, Economist Suggests Launch Could Lead to a CBDC<\/h2>\n

The U.S. central bank is preparing to launch the Fednow payment service, and the Fed explains in a recently published blog post<\/a> that there have been many interested candidates that want to utilize the service. The Fed details that entities planning to use the Fednow program in July include a \u201cdiverse mix of financial institutions of all sizes, the largest processors, and the U.S. Treasury.\u201d According to Fednow program executive sponsor Tom Barkin, the president of the Federal Reserve Bank of Richmond, the launch is an \u201cimportant milestone\u201d for \u201cinstant payments.\u201d<\/p>\n

The Fednow system<\/a> is allegedly able to facilitate payments and settlements instantly, \u201cregardless of size or geographic location \u2014 around the clock, every day of the year.\u201d With access to funds immediately, participants can manage their money in a more flexible fashion, according to the Fednow description. Access to the Fednow system will be granted via the Fedline Network, which already serves roughly 10,000 financial institutions and agents. \u201cThe Fednow Service will launch with a robust set of core clearing and settlement functionality and value-added features,\u201d the announcement from the Federal Reserve explains.<\/p>\n

Although, not everyone is excited about the central bank\u2019s plans to enhance payments, as Florida governor Ron DeSantis recently revealed legislation<\/a> that blocks a CBDC in the state of Florida. Speaking about the Fednow program, economist Richard Werner<\/a> told Michelle Makori, the lead anchor and editor-in-chief at Kitco News, that the timing is \u201csuspicious.\u201d The Fednow rollout could pave the way toward surveillance capitalism and usher in a CBDC.<\/p>\n

\u201cThe timing is suspicious,\u201d Werner said to Makori during his interview<\/a>. \u201cWhy do they roll this out now? The banking system has done its job well, in terms of making transfers of funds and payments, so why do we suddenly need to change it?\u201d<\/p>\n

Werner Insists the Government Wants to Eliminate Alternatives<\/h2>\n

Werner suspects that central banks will monopolize the banking industry and enforce \u201ctotalitarian control.\u201d He emphasized that \u201cwe can\u2019t really trust\u201d central banks, and the main goal is to remove alternatives. Coincidentally, U.S. President Joe Biden\u2019s recent economic report<\/a> downplays crypto assets like bitcoin (BTC)<\/a> and highlights that once the Fednow program is ready, there won\u2019t be a need for alternatives. The White House claims that crypto assets fail to achieve the core aspects of sound money in contrast to fiat currencies like the U.S. dollar.<\/p>\n

\u201cThey don\u2019t want these alternatives,\u201d Werner insists. \u201cSo they can just take your money. This is just the beginning, because the real totalitarian aspect comes into it when the programmability can be used, where it can be totally fine-tuned down to the person, and in real-time influence our behavior by restricting us from doing certain things \u2026 you\u2019ll need the permission of the central planners.\u201d<\/p>\n

When a CBDC does eventually launch, Werner suspects that alternatives and cash will be eliminated gradually, and because CBDCs are programmable, control over one\u2019s finances will not be difficult to achieve. Sure, you will be able to use the monetary ledger system, but in the end, the government\u2019s \u201ctotalitarian control system\u201d owns the funds.<\/p>\n

\u201cOnce you put your money in the central bank, and the central bank issues your CBDC, legally they own the money,\u201d Werner concluded. \u201cYou have a claim, but sadly this claim is subject to a number of conditions.\u201d As of March 22, 2023, roughly 114 different countries are working on CBDC research and development, while 11 countries like China, Nigeria, and Venezuela have implemented such systems.<\/p>\n

\n
\nTags in this story
\n<\/h6>\n
CBDC<\/a>, Central Bank<\/a>, Certification<\/a>, controversy<\/a>, Criticism<\/a>, Critique<\/a>, debate<\/a>, Digital Currency<\/a>, disagreement<\/a>, Dispute<\/a>, Federal Reserve<\/a>, Fedline Network<\/a>, Fednow<\/a>, Fednow Payments<\/a>, Fednow system<\/a>, financial agents<\/a>, financial industry<\/a>, Financial Institutions<\/a>, Florida Governor Ron DeSantis<\/a>, instant payments<\/a>, Ken Montgomery<\/a>, Legislation<\/a>, monetary ledger system<\/a>, opposition<\/a>, payment service<\/a>, pilot program<\/a>, program executive<\/a>, Richard Werner<\/a>, Settlements<\/a>, Skepticism<\/a>, Tom Barkin<\/a>, U.S. Treasury<\/a><\/div>\n<\/div>\n

What are your thoughts on the Fednow payment service and its potential impact on the financial industry? What do you think about Werner\u2019s opinions? Share your thoughts about this subject in the comments section below.<\/strong><\/em><\/p>\n

\n
\n\n<\/div>\n
\n
\nJamie Redman <\/h6>\n

\nJamie Redman is the News Lead at Bitcoin.com News and a financial tech journalist living in Florida. Redman has been an active member of the cryptocurrency community since 2011. He has a passion for Bitcoin, open-source code, and decentralized applications. Since September 2015, Redman has written more than 6,000 articles for Bitcoin.com News about the disruptive protocols emerging today.

\n
\n
\n<\/a>
\n<\/span>\n<\/p>\n<\/div>\n<\/div>\n

Image Credits<\/b>: Shutterstock, Pixabay, Wiki Commons<\/em><\/p>\n

\n

Disclaimer<\/strong>: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. Bitcoin.com<\/a> does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article.<\/p>\n<\/div>\n

\n