Digital Dollars And The Fed’s Plan To Alter U.S. Payment System

The Federal Reserve Bank of Cleveland put out an 11-page paper called, “Payments and the Pandemic”. The paper outlines a new initiative already in the works that aims “to improve and modernize the U.S. payments system”.

The initiative is called FedNow which will radically change how payments are processed. Today, payments are processed via Automated Clearing House (ACH) which the Federal Reserve says is too slow.

Instead, we need a new payment system, all on the heels of the COVID-19 pandemic. In reality, this is a power grab, and more consolidation of power which ties right into digital dollars…

A Payment System For All

So let’s read some highlights from the FedNow paper so you can see the plan for yourself.

The Fed’s recent efforts to modernize the U.S. payments system is to speed up the flow of payments between payer and payees. Another goal is to make sure that all Americans have access to the payments system

Yes, let’s ensure all Americans have access to the new payment system. This sounds sweet on the outside, yet this is a familiar tune.

In the Philippines they are rolling out a National ID to ensure the poor have access to their cashless payment system, (see: Surveillance State: National ID Comes To The Philippines). These things are not happening in a silo my friends, we have global coordination here.

FedNow Is Already In The Works

The Federal Reserve’s FedNow service, which is currently being built, will be an around-the-clock service whereby payments can be originated, cleared, and settled within seconds. 

You see, the FedNow plan is not some idea or thought. It’s being built right now and currently has a ‘target release date of 2023 or 2024’.

This Is About Establishing More Control

Is FedNow all about convenience?

Not quite.

In addition to offering secure instant payments, an important goal of FedNow is to establish a nationwide reach for the service so that this new type of payment is broadly accessible to consumers and businesses alike. 

What exactly does that mean?

A service like FedNow, coupled with a directory service with accurate information on where to route payments for final distribution to households and businesses, has the potential to solve some of the challenges the government faced when distributing pandemic relief payments.

It means, the Federal Reserve seeks to have direct access to your bank account and other personal information. This of course is for your own benefit, so payments can be routed to you in a more timely fashion.

What payments? Think, “bailout money”.

Instead of waiting on the government, the Federal Reserve can zap some freshly inflated dough right to your new account in no time. That is where this is all going. This is not just about a new payment system to speed things up. If it were, they would not need to establish a “directory service”.

This Federal Reserve paper even ties into Central Bank Digital Currencies.

Central Bank Digital Currencies

Let’s read about it.

The experience with pandemic emergency payments has brought forward an idea that was already gaining increased attention at central banks around the world, that is, central bank digital currency (CBDC).

In reality, the so-called COVID-19 pandemic has made possible the idea of central bank digital currencies. This is simply digital money that is manufactured out of thin air from a central bank.

You have to remember, the Federal Reserve is not a part of the Federal Government. They are a private banking institution. Essentially, they are seeking to bypass the government and issue currency on their own behalf.

The FedNow paper continues.

Legislation has proposed that each American have an account at the Fed in which digital dollars could be deposited, as liabilities of the Federal Reserve Banks, which could be used for emergency payments.

Do not read over the first three words. Legislation by your Republican and Democrat elected representatives.

So there you have it as we have shared before.

The Federal Reserve (and your Government) wants the power to create a digital wallet for you that will be housed at the Federal Reserve bank. No more need for commercial banks as the Fed explains, “central banks could support them (digital currencies) without the need for commercial bank involvement”. That would be a future goal, not an immediate one.

Again, a consolidation of power.

No More Anonymous Cash

One of the beauties of paper money is anonymity. I can purchase something and the only one who knows about it, is me and the guy I traded with.

With digital currency, that goes away.

Digital cash, which would be just like the physical currency issued by central banks today, but in a digital form and, potentially, without the anonymity of physical currency.

By design.

The Fed Is Working With The Bank Of International Settlements

The Federal Reserve is not performing these actions by themselves. They are working directly with the Bank of International Settlements (central bank of central banks) who is working on the same initiatives with other Central Banks.

Further,

The Board of Governors has a technology lab that has been building and testing a range of distributed ledger platforms to understand their potential benefits and tradeoffs.

“Ledger platforms”, meaning digital wallets that hold digital currencies that will be stored at Federal Reserve banks.

As the paper concludes, they explain the Fed is also working with the “Massachusetts Institute of Technology (MIT), to experiment with technologies that could be used for a central bank digital currency”.

We can now see, the plan for digital currencies is not suddenly popping up due to the pandemic and any claimed need for a new system. Digital currencies are on the cusp of becoming a reality as the world was gripped by the perfectly planned crisis at the right time to bring about a new phase of control over the people…

Globally.

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