Fednow Not Related to Digital Currency: US Central Bank Reassures Public

• The U.S. Federal Reserve has addressed recent concerns about its upcoming Fednow payment network and insists that it is not related to a digital currency.
• Critics have raised fears that a central bank digital currency (CBDC) would lead to greater surveillance of Americans‘ financial transactions.
• The Fed emphasizes that Fednow is solely focused on “instant payments” and will not replace cash or other payment options.

U.S. Central Bank Addresses Concerns Over Fednow Payment Network

The U.S. Federal Reserve has issued an update regarding the launch of its new payment service, Fednow, which is scheduled to commence in July. In response to recent criticism of the project and questions over its relationship with a central bank digital currency (CBDC), the central bank has asserted that the service is „neither a form of currency nor a step toward eliminating any form of payment, including cash.“

Fednow Won’t Replace Cash

When the U.S. Federal Reserve announced the launch of the Fednow service in July, it sparked immediate opposition from economists and politicians who feared that it could be one of the initial stages toward issuing a CBDC, which would bring about greater surveillance of Americans‘ financial transactions. To allay those fears, the Fed issued an update on April 7th stating that Fednow does not accomplish either objective and will only focus on „instant payments.“ The update further clarified that „Fednow is not related to a digital currency“.

Opposition From Economists And Politicians

In response to this announcement, economist Richard Werner expressed concern about the timing of the project and linked it with CBDC initiatives while Georgia Representative Marjorie Taylor Greene also criticized Fednow in April 5th remarks . Several U.S lawmakers have proposed legislation prohibiting CBDC initiatives in order to protect against such surveillance methods being implemented by US government agencies or private companies..

No Decision On Central Bank Digital Currency Yet

The U.S Central Bank’s notice further added that they had not made any decision yet regarding whether or not they will issue a central bank digital currency (CBDC). It stated that such an action can only be taken after authorization from both executive branch and congressional members . Moreover, they emphasized once more their stance on this issue: „A CBDC would not replace cash or other payment options.“

White House Stance On Issue

Interestingly enough ,the White House’s recent “Economic Report Of The President” noted possibilities where both FedNow and CBDC initiatives could interact with each other but did not go so far as to suggest any implementation plans for them at present time .