Why FedNow seems like a bad idea

[Majestic-milf]

 FedNow, a brainchild of the federal reserve system, is a digital payment which promises to hasten up payment and other services. Although not yet in operation, since it will be officially unveiled in July it has a promising future as believed by Richmond Fed president, Tom Barkin.
 And according to a statement by Fed reserve governor, Michelle Bowman yesterday, it looks too that she has her doubts on the possibility of creating a CBDC since such an action poses it's own risks; causing a restriction to freedom of choice to citizens who want to make use of their money and also intruding on the privacy of users. This has further pushed the thought of a US CBDC to the back burner.
 Notwithstanding, she acknowledged the importance of CBDCs and it's advantages which are:
- presenting opportunities to those without access to traditional banking activities
- and catching up to the Fed's global counterparts like the People's Bank of China which has its own product (the digital yuan) in place.
 However, a creation of a CBDC could become harmful when it becomes interest oriented as they present a difficult competition to banks, sidelining their ability to lend.
 My confusion though is this: the Fed reserve operates independently of the US govt and it's monetary policy decisions are not approved by either the Congress or the US president. Now while this helps them operate free of political pressure, it also limits it's accountability rate. Won't this FedNow service also suffer such, since the apple doesn't fall far from the tree?? Your thoughts.
https://www.cnbc.com/2023/04/18/fed-governor-bowman-casts-doubt-on-the-need-for-a-us-digital-dollar.html
 
 

[zasad@]

Such projects always start with good intentions, they are fast and instant payments for everyone. But how the project will develop later and what restrictions we will see is unknown.
There is a paradox in Russia. If I go to the bank application and send money to an individual, he will receive a notification about the receipt of money in the bank application within a minute. And if I send money to the account of the organization, then the payment can take up to 3 days, but as a rule, the company will receive the money the next day. The same is true between company payments, the period is 1-3 days. But it's stupid to have such delays in the modern world. And payments between countries can take up to 7 days.

[Majestic-milf]

Such projects always start with good intentions, they are fast and instant payments for everyone. But how the project will develop later and what restrictions we will see is unknown.
There is a paradox in Russia. If I go to the bank application and send money to an individual, he will receive a notification about the receipt of money in the bank application within a minute. And if I send money to the account of the organization, then the payment can take up to 3 days, but as a rule, the company will receive the money the next day. The same is true between company payments, the period is 1-3 days. But it's stupid to have such delays in the modern world. And payments between countries can take up to 7 days.

That's why we need Bitcoin! Personal opinion? These guys are just prolonging the inevitable. Thought for a second she was gon' suggest a sensible alternative when CBDCs being a 'not so good' idea was mentioned. But then she still goes ahead to introduce this? It's like jumping from the pan into the fire situation. Will they learn?

[DeathAngel]

It’s a test to see how well received a CBDC could he, it’s to test your compliance. I think it’s bad, real bad. Nobody wants to be followed, every step they make, every move they make. It’s all about control as we see with China & I hope it’s resisted. I just don’t think the West should be thinking about implementing this kind of totalitarian presence.

[zasad@]

Such projects always start with good intentions, they are fast and instant payments for everyone. But how the project will develop later and what restrictions we will see is unknown.
There is a paradox in Russia. If I go to the bank application and send money to an individual, he will receive a notification about the receipt of money in the bank application within a minute. And if I send money to the account of the organization, then the payment can take up to 3 days, but as a rule, the company will receive the money the next day. The same is true between company payments, the period is 1-3 days. But it's stupid to have such delays in the modern world. And payments between countries can take up to 7 days.

That's why we need Bitcoin! Personal opinion? These guys are just prolonging the inevitable. Thought for a second she was gon' suggest a sensible alternative when CBDCs being a 'not so good' idea was mentioned. But then she still goes ahead to introduce this? It's like jumping from the pan into the fire situation. Will they learn?

Bitcoin cannot solve business problems now if it is not payers through intermediaries who accept cryptocurrency, then transfer money to the account of a store or company.
I will explain with an example how cryptocurrency owners can be turned into criminals.
https://www.business-standard.com/article/international/israel-limits-cash-payments-to-fight-financial-crimes-tax-evasion-122080200124_1.html
The legislator can force all holders of cash and cryptocurrencies worth more than $10,000 to declare it, and anything found without a declaration will be confiscated in favor of the state. And the owner will get jail time.

[Flexystar]

All these digital yuan, FedNow, Rupee, Dirham, and much more in the list; literally feels like “Anti-Crypto” stuff. I mean it’s nothing more but way to divert common people like us who are enthusiastic about the crypto currencies. Feels like they are trying to give us more centralised and secured way to transact digitally, give us that hoho of crypto, you know that similar feeling that you would get while using the crypto currencies.

None of that Will ever work because thats centralised and has lot of KYC work up behind it. That would be nothing more but digital form of the green bills and copper pennies.

But have you guys noticed how much possessive the government is??

[BenCodie]

Is there some kind of race to create CBDC's that we aren't picking up on? In the last few days, I have read about UniCoin/UMU, BRICS and now FedNow. We also already know about the Digital Yuan which has already been deployed in China. We are all talking about each individual CBDC, it's potential effect on the economy/individual economies...but not about what will happen when all of these entities and new currencies enter the ecosystem.

All these digital yuan, FedNow, Rupee, Dirham, and much more in the list; literally feels like “Anti-Crypto” stuff. I mean it’s nothing more but way to divert common people like us who are enthusiastic about the crypto currencies. Feels like they are trying to give us more centralised and secured way to transact digitally, give us that hoho of crypto, you know that similar feeling that you would get while using the crypto currencies.

None of that Will ever work because thats centralised and has lot of KYC work up behind it. That would be nothing more but digital form of the green bills and copper pennies.

But have you guys noticed how much possessive the government is??

Definitely. It's not just anti-crypto, it's an attempt to pseduo-catchup with real, viable blockchains such as Bitcoin while transitioning the flawed and broken fiat system.

[Faisal2202]

FedNow...it looks too that she has her doubts on the possibility of creating a CBDC since such an action poses it's own risks; causing a restriction to freedom of choice to citizens who want to make use of their money and also intruding on the privacy of users. This has further pushed the thought of a US CBDC to the back burner.

I do not understand how FedNow has back burned the US CBDC thoughts because it is the CBDC in type of FedNow! And i think this cannot be fully implemented other than a few states but will not be accepted by the majority of people. That's a curious thing to observe because my thoughts were Biden was behind the CBDC because he always supports it unlike Trump and his companions. Even Trump and his companions had tried a lot to go against BTC and CBDC (indirectly using BTC). I think now i understand why they were against BTC from the start because they know CBDC will halt their (not accusing but we all know money moves from here and there in the dark) money flow. so they use BTC as bait to stop the implementation of CBDC (FedNow).

Won't this FedNow service also suffer such, since the apple doesn't fall far from the tree?? Your thoughts.
https://www.cnbc.com/2023/04/18/fed-governor-bowman-casts-doubt-on-the-need-for-a-us-digital-dollar.html

Actually, FedNow had started back in 2019, and from then, feds have made really great efforts to make it sure to function proper. well in my sight, the odds are in favor of CBDC implementation. apart from its implementation success, if we talk about its flaws and shadows, then they are distinct for each user, like for some pros and cons and vice versa overall, decentralization with full transparency is more acceptable than transparency with centralization.

[DaveF]

FedNow has very little to do with CBDC.
Think of it more as Zelle type service run by the Federal Reserve.
It's being pushed more and more since Zelle and a lot of the similar P2P payment providers are so rife with fraud and don't seem to care.

Here there are going to be RULES about the way things work. Not, oh to bad so sad someone got into your account and send all your money away.

It's also going to be cheaper for banks to use AND since it's not run by a bunch of banks other banks / credit unions will be able to get in easier then they can now.

Eliminating BTC / crypto for a moment. If I get paid by direct deposit, send all my bills out through my banks bill pay service, use cash app or similar to pay back my friend who charged dinner on his credit card. Do we really need the digital dollar? More and more cash is dead anyway.

-Dave

[bangjoe]

Folks, I love innovation, but we gotta be careful with CBDCs. Yeah, they're fast and efficient, but what about privacy? Do we want Big Brother watching our money moves? And don't get me started on banking monopolies.

Let's face it, the Fed Reserve might be independent, but politics can still mess with it. If CBDCs become more about making big bucks than helping people, we're all gonna be losers.

So, let's take it slow, weigh the pros and cons of CBDCs. In the meantime, let's build a financial system that puts regular folks first. Trust me, it's the best way!

CBDC will be very disturbing for those who want freedom and data security, today's world community is aware of what banking does in controlling the economy through policies that can kill them, maybe yes Big Brother will easily monitor the financial activities that we do.
Independent only on paper, they only hide in that sentence to cover their cover, who is willing to be a loser in plain sight.
Actually we really have to be slow in understanding this innovation, maybe what we think is also wrong about their intentions in a financial system like that, maybe we have to look at the reconstruction of the Fed because we need a revolution in a fair financial system.

[kryptqnick]

The arguments for FedNow are pretty weak, in my opinion. They shouldn't try to do something just because China's doing it, and people who aren't using banks probably won't use a CBDC either (either because they're old and/or in rural areas, preferring cash, or because they don't use banks for privacy reasons and will trust a CBDC even less than they trust banks). My guess is that the decision to launch will be postponed or the launch will start only experimentally, on a very small scope to see how it goes.

[southerngentuk]

You raise some valid concerns about the potential drawbacks of central bank digital currencies (CBDC). Privacy is certainly a major issue that needs to be addressed if CBDC is to be adopted on a large scale. It's important to ensure that the technology used to create CBDC is secure and that users' transactions and personal information are protected from unauthorized access or misuse.

In addition, CBDC could potentially give too much power to banking monopolies, which could be harmful to competition and consumer choice. It's important to ensure that CBDC is designed in a way that promotes fair and open access for all, regardless of their financial situation.

[WillyAp]

The CBDC don't share much with Crypto Users IMHO.

[Cryptomultiplier]

Is there some kind of race to create CBDC's that we aren't picking up on? In the last few days, I have read about UniCoin/UMU, BRICS and now FedNow. We also already know about the Digital Yuan which has already been deployed in China. We are all talking about each individual CBDC, it's potential effect on the economy/individual economies...but not about what will happen when all of these entities and new currencies enter the ecosystem.

All these digital yuan, FedNow, Rupee, Dirham, and much more in the list; literally feels like “Anti-Crypto” stuff. I mean it’s nothing more but way to divert common people like us who are enthusiastic about the crypto currencies. Feels like they are trying to give us more centralised and secured way to transact digitally, give us that hoho of crypto, you know that similar feeling that you would get while using the crypto currencies.

None of that Will ever work because thats centralised and has lot of KYC work up behind it. That would be nothing more but digital form of the green bills and copper pennies.

But have you guys noticed how much possessive the government is??

Definitely. It's not just anti-crypto, it's an attempt to pseduo-catchup with real, viable blockchains such as Bitcoin while transitioning the flawed and broken fiat system.

My own question or rather an observation is this, why are people trying to improve on the monetary system by first using the catch phrases of fast, swift, reliable?
Is it not from same Internet service providers' transmission tower, we all enjoy the efficient operation and completion of transactions by these rising digital money firms?
CBDC is still going to be different from the cryptocurrencies no matter the promise of swiftness or speed of service and reliability we are promised.  
FedNow would still be ranked among the other centralized agencies who have the power to freeze ones account without reason, despite KYC verification and all, although I beg to differ. Still, they just want to know everything and everyone, don't they?

[Xylber]

Let's face it, the Fed Reserve might be independent, but politics can still mess with it.

"Independent" like a private company with his own profits, and working solely for itself...

[savetheFORUM]

All these digital yuan, FedNow, Rupee, Dirham, and much more in the list; literally feels like “Anti-Crypto” stuff. I mean it’s nothing more but way to divert common people like us who are enthusiastic about the crypto currencies. Feels like they are trying to give us more centralised and secured way to transact digitally, give us that hoho of crypto, you know that similar feeling that you would get while using the crypto currencies.

None of that Will ever work because thats centralised and has lot of KYC work up behind it. That would be nothing more but digital form of the green bills and copper pennies.

But have you guys noticed how much possessive the government is??

Well, there is nothing really to feel like about that, it's literally anti-crypto and they are doing it with only the purpose of having full control over everyone's finances and letting them have no privacy or financial freedom at all. That's what they've been doing for centuries, and that is what they will want to be doing in the future as well.

Cryptocurrencies have posed a great threat to them and that has led them to brainstorm and come up with ideas like CBDCs so that they can get their people to stop using cryptocurrencies and use their digital currencies so that they don't lose control.

[mindrust]

Why don't they improve their SWIFT system instead of wasting their time on that crap? When you think about it, whatever payment/money transfer system they'll come up with, it won't be any different than what we are using right now. If they had the brains to make something better for us, they would have done it long time ago.

Since nobody wants to use SWIFT anymore and the US banned so many countries out of it, what makes anybody to think they'll do it right this time?

Instant payment my ass.

If you want us to pay instantly, make SWIFT instant.

[kaseygriffin]

I think this seems to be true, the federal reserve and their digital products are also facing accountability and accountability challenges. However, with the announcement of new products like FedNow, it also brings many benefits to users and businesses. Regarding the issuance of a CBDC, careful consideration should be given to its effects on the economy and stakeholders. It is important to ensure that the mechanism governing and governing the CBDC is transparent and accountable. Accelerating the development of digital currency technology goes hand in hand with ensuring the safety and security of users and the financial police officer.

[crwth]

This will definitely be one of the things that are going to be hard to understand in general, knowing that there are a lot of technical things with these CBDCs and why it is important for them and not so much for us. For me as long as there's a possibility of it being unlimited in supply, it's not ideal.

But have you guys noticed how much possessive the government is??

Well, that's just how they are going to control the market and make sure that it's ok for everyone. But one thing is for sure if the people there are going to be selfish, they have a lot to gain with this.