Friday, April 19, 2024

Federal Reserve Moves Towards Centralized Digital Currency

'The federal government cannot and does not have the authority to issue a CBDC directly to individuals without explicit Congressional approval...'

(Ken Silva, Headline USAThe Federal Reserve announced Wednesday the impending launch of a pilot program that observers say resembles the controversial central bank digital currency (CBDC) system—something that would lead to vaccine passports, social credit scores and other dystopian social technologies, Zero Hedge reported.

The “FedNow Service” will start operating in July, enabling financial institutions to offer “instant payment services,” the Federal Reserve said in a statement.

“Through financial institutions participating in the FedNow Service, businesses and individuals will be able to send and receive instant payments at any time of day, and recipients will have full access to funds immediately, giving them greater flexibility to manage their money and make time-sensitive payments,” it said.

The Fed said early adopters of this system include a “diverse mix of financial institutions of all sizes, the largest processors, and the U.S. Treasury.”

The U.S. central bank has touted the program as a way to improve the financial system, but critics warn that it will allow government to exercise more overreach and invasion of citizens’ private lives.

“While instant, 24/7 payments seems good, there’s implications to leaning into credit-based system,” said Jordan Schachtel, publisher of The Dossier.

“FedNow can quickly transform to a surveillance system,” he continued. “Does FedNow have AI or human circuit breaker managing it? FedNow is a giant red flag.”

Some Republicans have moved to block a centralized digital currency. A group of 10 representatives—led by Rep. Tom Emmer, R-Minn.—last month introduced the CBDC Anti-Surveillance State Act.

It aims to halt efforts of unelected bureaucrats in Washington, D.C., from issuing a central bank digital currency that strips Americans of their right to financial privacy.

“The federal government cannot and does not have the authority to issue a CBDC directly to individuals without explicit Congressional approval,” said Rep. French Hill, R-Ark., a cosponsor of the bill.

“The Chinese Communist Party’s move to use government-run digital currency to impose further control on its people and its economy is a cautionary tale that America must avoid,” added another co-sponsor, Rep. Mike Flood, R-Neb.

“The CBDC Anti-Surveillance State Act is a key step towards ensuring that Americans maintain their financial freedom by prohibiting a centrally controlled digital currency as our economy continues to innovate in the area of digital assets,” he added.

Former National Security Advisor Michael Flynn—the man considered by former President Barack Obama to be one of the biggest threats to the global world-order—warned in an interview with conservative radio icon Alex Jones that the recent banking system volatility could be designed to push Americans into a centralized system.

“If the American people suddenly go on a bank run, then this government is gonna turn around and say, ‘See everybody’s afraid; we have to transition,’” Flynn said in the interview for Jones’s InfoWars broadcast.

Ken Silva is a staff writer at Headline USA. Follow him at twitter.com/jd_cashless.

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