Is FedNow the First Step towards Banning Bitcoin?

04/07/2023 13:11 • NFT Newsflash • 125 views

On April 7th, US presidential candidate Robert Kennedy Jr. believed that the Federal Reserve’s digital payment system “FedNow” was the first step for the government to ban Bitcoin. Kennedy stated that people should not be fooled by FedNow’s initial statement that it was limited to interbank transactions. He pointed out that this could be the first step towards banning and seizing Bitcoin, just as the Treasury did with gold 90 years ago in 1933

US presidential candidate: The Federal Reserve’s digital payment system “FedNow” is the first step for the government to ban Bitcoin

With the rapid advancement in technology, digital payments have become commonplace across the world. The US Federal Reserve announcing its digital payment system, FedNow, has raised many concerns in the cryptocurrency community. US presidential candidate Robert Kennedy Jr. recently stated that this could be the first step towards banning and seizing Bitcoin, just as the Treasury did with gold 90 years ago in 1933. In this article, we will explore the FedNow system and its potential implications on Bitcoin.

What is FedNow?

FedNow is a digital payment system announced by the US Federal Reserve in August 2019. Its primary objective is to provide a real-time payment infrastructure in the US, reducing the reliance on traditional payment methods. The FedNow system will allow people to make payments and transfer funds directly from their bank accounts to other recipients in real-time, 24 hours a day, seven days a week. The Federal Reserve aims to launch the FedNow system in 2023.

The Concerns of Robert Kennedy Jr.

On April 7th, US presidential candidate Robert Kennedy Jr. expressed his concerns regarding the FedNow system. Kennedy stated that he believed that the Federal Reserve’s digital payment system was the first step for the government to ban Bitcoin. He pointed out that people should not be fooled by FedNow’s initial statement that it was limited to interbank transactions. Kennedy suggested that the FedNow system could be used to track and monitor transactions in real-time, making it easier for the government to identify and ban Bitcoin holdings.

The Rebuttal from the Federal Reserve

The Federal Reserve has stated that the FedNow system is only limited to interbank transactions, and it will not collect or store any transaction data from users using the system. The Federal Reserve has also iterated that the system would not have any impact on Bitcoin or other cryptocurrencies as they operate outside the traditional banking system.

The Implications on Bitcoin

The FedNow system could potentially have implications on Bitcoin, although it is not clear at this stage. Kennedy’s concerns may not be entirely unfounded, as history has shown us that governments have seized valuable assets during times of economic crisis. Kennedy’s reference to the 1933 gold seizures by the Treasury was during the Great Depression when the government replaced the gold standard with the Dollar. It is, however, uncertain if the same actions will be taken against Bitcoin.

Conclusion

The FedNow system announced by the US Federal Reserve has raised concerns among the cryptocurrency community. While Robert Kennedy Jr.’s fears may appear to be far-fetched, it is essential to note that governments have taken drastic actions in the past. Although the Federal Reserve has denied any implications on Bitcoin, it remains to be seen how the government plans to regulate the digital asset in the future.

FAQs

1. What is FedNow?
FedNow is a digital payment system announced by the US Federal Reserve in August 2019.
2. Can FedNow be used to track Bitcoin transactions?
At this stage, it is unclear if FedNow can be used to track Bitcoin transactions.
3. Will the FedNow system have any impact on Bitcoin?
The Federal Reserve has stated that the FedNow system would not have any impact on Bitcoin or other cryptocurrencies as they operate outside the traditional banking system.

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