- Kennedy highlights potential risks of financial slavery and political tyranny posed by CBDCs and FedNow system.
- Concerns about government surveillance and asset control accompany CBDC development.
Robert F. Kennedy Jr. Raises Alarm on FedNow and CBDCs
Robert F. Kennedy Jr., a presidential hopeful and a vocal critic of central bank digital currencies (CBDCs) and the Federal Reserve’s FedNow system, has warned of the potential risks these developments pose. He suggests that CBDCs could lead to financial slavery and political tyranny, drawing comparisons with the Treasury’s seizure of gold 90 years ago.
FedNow and CBDCs: A Slippery Slope to Financial Slavery?
Kennedy took to Twitter to express his concerns about the FedNow real-time gross settlement (RTGS) system for instant payments and CBDCs. Fed Chair Jerome Powell has clarified that CBDC development is separate from FedNow and remains in its early stages of experimentation.
Kennedy argues that unlike anonymous cash transactions, CBDCs would allow the government to surveil private financial affairs. This would grant the central bank power to enforce dollar limits on transactions, restrict where money can be sent or spent, and even set expiry dates for funds.
The Dangers of CBDCs: Asset Control and Surveillance
Kennedy further highlights that a CBDC linked to digital IDs and social credit scores would enable the government to freeze assets or limit spending to approved vendors if individuals fail to comply with specific mandates, such as vaccine requirements. While initially limited to interbank transactions, Kennedy cautions against overlooking the possibility of bitcoin being banned and seized as gold was in 1933.
Many have expressed concerns about a federal CBDC, including U.S. Representative Tom Emmer, who introduced the CBDC Anti-Surveillance Act, and U.S. Senator Ted Cruz, who submitted a bill to prohibit the Federal Reserve from developing a direct-to-consumer CBDC. Florida Governor Ron Desantis has also proposed legislation to ban the use of CBDCs as money in his state.
In conclusion, the growing interest in central bank digital currencies and the FedNow system has raised concerns among policymakers and prominent figures like Robert F. Kennedy Jr. The potential risks associated with CBDCs, including financial slavery, political tyranny, and increased government surveillance, have ignited debates about the need for regulatory oversight and caution. As the development of CBDCs progresses, it is crucial for governments and central banks to consider the potential consequences and address these concerns to ensure a safe and secure financial ecosystem for all.
Suggested Reading :
- Florida Governor Moves to Ban CBDC(Central Bank Digital Currency) in the State
- Texas Senator Ted Cruz’s Bill to Block CBDC
