FedNow Goes Live, Paving Way to CBDCs

It’s getting really close and very real folks!  Carrying cash and saving cash in your gun safe for a “rainy day” may soon be impossible.  Every transaction you make, from a pack of gum to a box of shotgun shells, will be on record and available for data harvest.  “Who cares Dennis?  I use my Visa card for everything already, I have nothing to hide!”  I agree that I use electronic payment for 99.5% of my purchases all I buy is recorded.  But I do have a stash of cash for a rainy day, and I do like the idea of having some way to purchase something anonymously if (when?) the government turns on us.  But it’s coming and there is no way to stop it.  South Dakota and Florida might try and delay but that won’t work for very long. We will be told that cash is only good for drug pushers and addicts, child traffickers, prostitutes and drug cartels.  It has no further purpose in civilized society and is the main source of transmitting Covid and other nasty germs.

*****************

On June 29th, the U.S. Federal Reserve announced that 57 firms have been certified to utilize its new instant payments system called “FedNow.” The Federal Reserve said 41 banks and 15 service providers would be “early adopters” after its late July launch. The Federal Reserve officially launched this “wonderful” new product, and FedNow is now live at 35 banks. Major banks, such as JPMorgan Chase and Wells Fargo, are two of the early adopters, as is the U.S. Treasury.

What is FedNow?

FedNow is a new service that will immediately allow the transfer of funds. Everything will be run through the Federal Reserve so that each transaction will happen fast. Since this is the public’s first interaction with using the Fed directly, it will take some adjusting. So, if the Fed gives the public a little taste after they get a little taste, they’ll be all in and wanting more. Then, they can start incorporating the complete plan. That’s what this is all about.

The Federal Reserve claims this is the alternative to a CBDC — a Central Bank Digital Currency. But really, what this is is a stepping stone to a CBDC. Once the public gets more comfortable with the speed of FedNow and the system is accepted as the standard procedure, you’ll get a Central Bank Digital Currency.

Uniform Commercial Code

A few steps must be completed before a full-blown CBDC system can be launched successfully. This is where the Uniform Commercial Code comes into play. The Uniform Commercial Code is a set of rules governing commercial transactions to hold assets as collateral on loans and contracts. Lenders use the Uniform Commercial Code to prevent borrowers from selling the collateral or obtaining additional financing using that same collateral as security.

Lawmakers in Iowa, Indiana, Nebraska, and New Hampshire have recently adopted laws that address digital assets; this is known as UCC Article 12. Eventually, all fifty states will have lawmakers looking at updating the Uniform Commercial Code to establish a foundation for a future Central Bank Digital Currency.

Central Bank Digital Currency

Central Bank Digital Currency is not really money. So, how will the commercial code deal with that? You can’t put Central Bank Digital Dollars in your pocket and walk out the door. That means Digital Dollars won’t be in your actual possession. Currently, digital money, like Bitcoin, is something you can put on a thumb drive. That’s something you can possess. But with digital currency, you won’t be able to do that. Central Bank Digital Dollars will not be something you can physically control. This is why lawmakers are updating the Uniform Commercial Code the way they are.

To make a payment, the sender and receiver must have bank accounts that are part of the FedNow network. Current payment platforms such as PayPal and Venmo are not directly deposited into a bank account. There is a processing window, so those funds could take a day or two before they are available. FedNow will eliminate that waiting period. Will that be enough incentive for this new structure to be accepted?

https://harbingersdaily.com/fednow-goes-live-paving-the-way-to-digital-currency/