The Tipping Point

6 Is the Dollar Facing a Tipping Point? CBDCs, FEDNOW and Digital Gatekeeping Of course, as unpleasant as shockwaves of inflation would be for you, it wouldn’t be any fun for politicians and the Washington deep state either. The last thing they want is to lose the power of that reserve currency printing press. And they absolutely can’t have Americans opting for other currencies here at home. The way they continue to force compliance is through control and loss of privacy. So they are taking defensive measures as well. What are they? FEDNOW and the modernization of money transfer Is the newly introduced FEDNOW system 10 an entry point for central bank digital currencies - CBDCs? One thing seems certain: the Federal Reserve could not create and enforce a CBDC without FEDNOW. What is it? It is a modernization of the U.S. banking and monetary transfer system that allows funds to be transferred nearly instantaneously instead of taking days to clear. The banking system has been fighting this overhaul for decades. Banks have been collecting interest on those funds while they are held. And over time, those interest payments add up to real money for the banking industry. But it is no longer a workable arrangement in the digital age. Not with the emergence of crypto and other competing systems. Other industrialized nations like the UK, Australia, South Korea, India, Brazil and China already have instant transfer payment systems. The tide has definitely turned and the banks have to throw in the towel on this fight. But it will also enable a lot more surveillance on spending. Instead of interbank clearing, FEDNOW enables Federal Reserve clearing. FEDNOW opens up all kinds of new possibilities for both convenience and surveillance, for freedom and control. It remains to be seen whether the changes are going to be positive on balance or not. But big paradigm shifts like these are almost always brought about for convenience. Then when fully adopted, people come to depend on them. It is not until much later that the levers of control are brought in and realized. CBDCs CBDCs are digital forms of fiat currency that are issued and backed by a country’s central bank. CBDCs are designed to function as a digital version of physical cash, and are intended to be used for everyday transactions, such as buying goods and services, or transferring money to other individuals or businesses. Unlike decentralized cryptocurrencies, which are not backed by any government or central authority, CBDCs are issued and controlled by a central bank, and are typically designed to be used within a specific country or region. CBDCs can be used for both peer-to-peer transactions and for payments between individuals and businesses. Questions? Speak to a specialist at (800) 428-1493.