The U.S. financial services sector and cultural libertarians have been concerned about the Federal Reserve’s initiative for a digital dollar or Fedcoin.
Bloomberg reported on (March 22) reported that research into a fed-controlled replacement for cryptocurrencies might produce prototypes as soon as July.
“The Federal Reserve Bank of Boston and the Massachusetts Institute of Technology, at work on the research and creation of prototypes for a Fedcoin platform, could unveil their findings in July, according to James Cunha, the project leader for the Boston, per Bloomberg.”
“Banks fear that such a reality could cut into their own profits, prompting the industry’s central trade group — the American Banking Association (ABA) — to lobby Congress that a digital dollar is unnecessary.”
On Tuesday, The Federal Reserve Bank of New York and a host of major banks announced Tuesday a pilot program for a “digital dollar,” raising new concerns about the potential shift to a centralized digital currency.
Members of the U.S. banking community are working on a proof of concept (PoC) project that will explore the feasibility of an interoperable digital money platform known as the regulated liability network (RLN). Using distributed ledger technology, the proposed platform would create innovation opportunities to improve financial settlements and would include participation from central banks, commercial banks of various sizes and regulated non-banks.
The 12-week test will explore a digital money platform that “operates exclusively in U.S. dollars where commercial banks issue simulated digital money or ‘tokens’ — representing the deposits of their own customers — and settle through simulated central bank reserves on a shared multi-entity distributed ledger,” a press release explained.
The Federal Reserve of New York tried to clam the waters by emphasizing the test will use only simulated data.
“It is not intended to advance any specific policy outcome, nor is it intended to signal that the Federal Reserve will make any imminent decisions about the appropriateness of issuing a retail or wholesale CBDC, nor how one would necessarily be designed,” the bank said.
In addition to the NYIC, the other participants on this project include the following financial institutions and payments organizations: BNY Mellon, Citi, HSBC, Mastercard, PNC Bank, TD Bank, Truist, U.S. Bank, and Wells Fargo.
The announcement triggered concerns that the U.S. may be heading toward adopting a centralized digital currency that would give the government increased control over Americans’ finances or perhaps even result in the adoption of a social credit system.
The author of Rich Dad Poor Dad shared his thoughts on this and other issues globalists are working on.
Critics pointed out the dangers of a fed-controlled digital currency:
“Decentralize money. No digital dollar. A digital U.S. currency would be one of the most dangerous developments in history. The government can simply flip a switch to block all your transactions, it controls your entire life. We need a wall of separation between money and state,” former Rep. Justin Amash said.
No digital dollar.
A digital U.S. currency would be one of the most dangerous developments in history. When government can simply flip a switch to block all your transactions, it controls your entire life. We need a wall of separation between money and state.
— Justin Amash (@justinamash) November 16, 2022
“Government-controlled digital currency is critical to the future the global elite are building. They want to trace everything you do, control you and deny you funds based on a social credit system where they can steal your money for opposing their narratives or questioning them,” Twitter influencer Robby Starbuck added.
Government controlled digital currency is critical to the future the global elite are building. They want to trace everything you do, control you and deny you funds based on a social credit system where they can steal your money for opposing their narratives or questioning them. https://t.co/A5LYIghFxo
— Robby Starbuck (@robbystarbuck) November 15, 2022
“It begins,” Edward Snowden reacted.
Other Twitter users chimed in too:
- “Does everyone feel that? that is your money and freedom slipping away from you,” another person reacted.
- “Cash is about to become extinct. Total control. 1984. Orwell,” one person predicted.
- “Say Goodbye to freedom. Food tickets based on your social credit are coming,” another person predicted.
The New York Federal Reserve said it will publish a report about the test once it is completed.
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