Fun

US Central Bank’s Fednow Payment Service to Launch in July, Economist Calls Timing ‘Suspicious’

News Feed - 2023-03-23 02:03:48

US Central Bank’s Fednow Payment Service to Launch in July, Economist Calls Timing ‘Suspicious’


According to the U.S. Federal Reserve, the central bank’s 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’s new payment service. Economist Richard Werner, however, believes the timing of the Fednow rollout is “suspicious,” and he suggests that “maybe it’s all about rolling out” a central bank digital currency (CBDC). Fednow Payment Service Prepares to Facilitate Instant Payments, Economist Suggests Launch Could Lead to a CBDC


The U.S. central bank is preparing to launch the Fednow payment service, and the Fed explains in a recently published blog post 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 “diverse mix of financial institutions of all sizes, the largest processors, and the U.S. Treasury.” According to Fednow program executive sponsor Tom Barkin, the president of the Federal Reserve Bank of Richmond, the launch is an “important milestone” for “instant payments.”


The Fednow system is allegedly able to facilitate payments and settlements instantly, “regardless of size or geographic location — around the clock, every day of the year.” 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. “The Fednow Service will launch with a robust set of core clearing and settlement functionality and value-added features,” the announcement from the Federal Reserve explains.


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


“The timing is suspicious,” Werner said to Makori during his interview. “Why 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?” Werner Insists the Government Wants to Eliminate Alternatives


Werner suspects that central banks will monopolize the banking industry and enforce “totalitarian control.” He emphasized that “we can’t really trust” central banks, and the main goal is to remove alternatives. Coincidentally, U.S. President Joe Biden’s recent economic report downplays crypto assets like bitcoin (BTC) and highlights that once the Fednow program is ready, there won’t 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.


“They don’t want these alternatives,” Werner insists. “So 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 … you’ll need the permission of the central planners.”


When a CBDC does eventually launch, Werner suspects that alternatives and cash will be eliminated gradually, and because CBDCs are programmable, control over one’s finances will not be difficult to achieve. Sure, you will be able to use the monetary ledger system, but in the end, the government’s “totalitarian control system” owns the funds.


“Once you put your money in the central bank, and the central bank issues your CBDC, legally they own the money,” Werner concluded. “You have a claim, but sadly this claim is subject to a number of conditions.” 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. Tags in this story CBDC, Central Bank, Certification, controversy, Criticism, Critique, debate, Digital Currency, disagreement, Dispute, Federal Reserve, Fedline Network, Fednow, Fednow Payments, Fednow system, financial agents, financial industry, Financial Institutions, Florida Governor Ron DeSantis, instant payments, Ken Montgomery, Legislation, monetary ledger system, opposition, payment service, pilot program, program executive, Richard Werner, Settlements, Skepticism, Tom Barkin, U.S. Treasury


What are your thoughts on the Fednow payment service and its potential impact on the financial industry? What do you think about Werner’s opinions? Share your thoughts about this subject in the comments section below. Jamie Redman


Jamie 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. Putin, Xi Vow to Use Yuan as Russia and China Move to Settlements in National Currencies ECONOMICS | 2 hours ago Central Bank of Venezuela Lags in Delivering Economic Data, Experts Fear Upcoming Hyperinflation ECONOMICS | 15 hours ago


Image Credits: Shutterstock, Pixabay, Wiki Commons Previous articleBiggest Movers: XRP Surges to Strongest Point Since November Next articleFederal Reserve Hikes Rate by 25bps to Keep Inflation at Bay, Aims for 2% Inflation Rate by 2025 Disclaimer: 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 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. Read disclaimerShow comments More Popular NewsIn Case You Missed ItSEC Risks Violating Admin Procedure Act by Rejecting Spot Bitcoin ETFs, Says Grayscale


Grayscale Investments" CEO explains that the U.S. Securities and Exchange Commission (SEC) could potentially violate the Administrative Procedure Act by not approving a spot bitcoin exchange-traded fund (ETF). SEC Approving Spot Bitcoin ETF Is "a Matter of When and Not ... read more.Interest in Real Estate Investments in Spain Grew 400%, With Some Using Crypto and Stocks as Payment Method Survey: Adoption in Argentina Grows, With 12 out of 100 Adults Having Invested in Crypto Iran to Increase Penalties for Unauthorized Cryptocurrency Mining Microbt Reveals Latest Bitcoin Mining Rigs — Machines Produce up to 126 TH/s With Custom 5nm Chip Design

News Feed

Brayden Lindrea8 hours agoGrayscale Bitcoin ETF decision could happen this week, pundits sayThe pending Grayscale ruling could impact the race for an approved spot Bitcoin exchange-traded fund.5467 Total views43 Total sh
Former FTX Executive Accused of Fueling a Charity Through Discounted FTT Purchase
Former FTX Executive Accused of Fueling a Charity Through Discounted FTT Purchase A former executive of FTX allegedly earned profits for a charity by purchasing discounted FTX toke
Bitcoin Miner Cleanspark Secures $35 Million in Financing from Trinity Capital
Bitcoin Miner Cleanspark Secures $35 Million in Financing from Trinity Capital On Tuesday, the bitcoin mining and energy technology firm Cleanspark announced that it has secured $3
‘Dr Doom’ Nouriel Roubini Admits Bitcoin May Be a Store of Value, Sees Big Revolution in Central Bank Digital Currencies
"Dr Doom" Nouriel Roubini Admits Bitcoin May Be a Store of Value, Sees Big Revolution in Central Bank Digital Currencies Economist Nouriel Roubini, also known as
Polymarket clinches MoonPay payments partnership amid US election betting frenzy
Alex O’Donnell6 hours agoPolymarket clinches MoonPay payments partnership amid US election betting frenzyPolymarket now accepts most fiat payments as well as crypto purchases with PayPal, according to MoonPay.2730 Tota
Ripple joins multi-chain DeRec Alliance for secrets management
Derek Andersen5 hours agoRipple joins multi-chain DeRec Alliance for secrets managementRipple joins the Hedera and Algorand Foundations and industry players to advance a recovery standard to rival ERC-4337.876 Total view
2 key Bitcoin indicators have ‘cooled off’ — Why it could be bullish
Ciaran Lyons5 hours ago2 key Bitcoin indicators have ‘cooled off’ — Why it could be bullishThe Bitcoin funding rate and three-month annualized basis rates are moving to levels that signal to traders it may just be
Bitcoin, Ethereum Technical Analysis: ETH Hits $2,000 Following Shapella Upgrade
Bitcoin, Ethereum Technical Analysis: ETH Hits $2,000 Following Shapella Upgrade Ethereum moved above $2,000 on Thursday, as markets continue to react to the successful Shanghai up
Ezra Reguerra5 hours agoUK politicians enter the metaverse, mainstream media says NFTs are worthless: Nifty NewsletterBritish politicians went to the metaverse to discuss the benefits and potential challenges that Web3 t
Alek Hidell10 hours agoBinance exit aftershock: Can one resignation tip the crypto trust scales?The announcement of yet another top figure departing Binance coincided with an increased outflow of funds from the crypto pl
Stakeholder urges swift implementation of Nigeria’s blockchain policy
Amaka Nwaokocha11 hours agoStakeholder urges swift implementation of Nigeria’s blockchain policySiBAN president Obinna Iwuno stressed the necessity of establishing a forward-thinking regulatory framework to accelerate
Brayden Lindrea5 hours agoAI unlikely to destroy jobs, but cost to certain workers may be ‘brutal’ — UN studyThe International Labour Organization study says that AI will more likely augment jobs than destroy them,