“Fed Now” starts in a few days.

There has been a lot of online traffic as well as traffic to my in box about Fed Now.

There is a confusion by many that the implementation of Fed Now, which will be happening in just a few days, is the implementation of CBDCs, or Central Bank Digital Currencies (replacing fiat currency – cash – with zeros and ones.)

That is not the case.

Fed Now is a system being implemented by the Federal Reserve Bank to dramatically increase the speed of interbank transfers as well as the more general transfer of money electronically outside the banking system with services like Venmo, Pay Pal, Apple Pay and others.

Funds sent on those platforms arrive at the receipt point virtually instantly.

The Federal Reserve has finally caught up. Fed Now facilitates the instant transfer of funds between banks with the same speed of the existing commercial platforms.

There is no digital currency related to the Fed Now program. It continues to use existing currency but just moves it faster.

There are recent articles and blog posts that claim that Fed Now will give the government new control over your money,

No. That is coming with CBDCs, which I cover below, but Fed Now just facilitates the speed with which the banking system will be able to transfer money.

The service will be available to some 10,000 financial institutions but they will not be forced to join the platform.

CBDCs, Central Bank Digital Currencies is a government program to replace fiat currency – cash- with zeros and ones. Currency, money, will be digital.

There are a number of problems with CBDCs, but the most egregious is the fact that when that program is implemented the federal government will have the opportunity to “spy” on any and all of your bank transactions – and control them if they chose.

North Carolina, South Dakota, and Florida have all banned CBDCs. It’s likely more will follow and there is some opposition in Congress. But the Constitution grants the creation on money to House of Representatives and bans states from such. So this is a coming legal battle that will wind up in the Supreme Court.

CBDCs will be a privacy nightmare, Write and call your legislators to oppose them.

In the meantime, accumulate gold and silver.

And subscribe to Strategic Financial Intelligence to follow the global currency reset.

Be One Step Ahead

John Truman Wolfe