Presidential hopefuls Robert F. Kennedy Jr. and Florida Governor Ron DeSantis are rallying against the Federal Reserve’s FedNow payments system, claiming it would pave the way for a central bank digital currency (CBDC) and could be used as an instrument of government control.
RFK Jr. sounds alarm bells on FedNow and CBDCs
On April 11, RFK Jr. took to Twitter to express his concerns over CBDCs, calling them the “ultimate mechanisms for social surveillance and control”.
He questioned the Fed’s claim that FedNow wouldn’t be used to facilitate a CBDC, stating that it would be more easily digestible were it not for the Biden administration’s hostility towards cryptocurrencies.
Kennedy also accused the government of colluding with banksters to keep people trapped in the bubble of profiteering and control.
He cited Nic Carter’s February 8 post on Pirate Wires, where Carter described 15 incidents where President Biden has weaponized the FDIC, OCC, and DOJ to force crypto-friendly banks to close their doors to crypto firms.
DeSantis joins RFK Jr. to ban CBDCs in Florida
Governor DeSantis of Florida shares RFK Jr.’s concerns about CBDCs, stating that they could be used to curtail firearm purchases or limit gasoline sales.
He introduced a ban on CBDCs from any country to Florida’s legislature, suggesting that the technology could be used to control citizens’ behavior.
FedNow is the Federal Reserve’s new instant payment service, allowing customers at participating banks and credit unions to send and receive the money within seconds, 24/7, and every day.
The service is expected to come online in July 2023 and will be available to all banks and credit unions. However, there’s no requirement for them to join.
According to Fed Chair Jerome Powell, FedNow will enable all banks in the United States, not just the big ones, to offer instantly available funds and real-time payments to their customers. Neobanks would need to partner with a participant bank to offer the service.
FedNow isn’t a CBDC, says the Federal Reserve
The Federal Reserve issued clarity on its upcoming launch of FedNow, claiming that it is not launching a CBDC. The Fed asserted that FedNow is a payments service, not a form of currency, nor a step towards eliminating any payment form, including cash.
CBDCs are digital assets pegged to a sovereign currency, issued and managed by their respective governments or central banks.
The Fed reiterated that the U.S. central bank will not release a retail CBDC without written approval from Congress. It also stated that the executive branch would have to be on board.
RFK Jr. and Governor DeSantis’ concerns about FedNow stem from the fear that the government would use the payments system as a tool of surveillance and control.
Although the Federal Reserve has stated that FedNow is not a CBDC, the fear of the government’s intentions toward the crypto industry persists.
The government must assure its citizens that their privacy and civil liberties are not at risk, and it must engage in transparent dialogue with crypto industry stakeholders to address their concerns.
