A growing number of states are passing new laws in the fight against CBDC from being introduced by the Federal Reserve.
The Federal Reserve system is the country’s central bank. The system is comprised of regional banks that are responsible for the oversight of the privately run banks within its banking district. The regional banks were established by the Federal Reserve Act and have been self-managed by banking insiders that are selected from within their own ranks.
The Federal Reserve system is overseen by a Board of Governors. Each governor is nominate by the President and receives approval from Congress to serve a 14-year term.
Two of the recent bank collapses, Silicon Valley Bank (SVB) and First Republic Bank, both failed under the watch of the current management of the San Francisco Fed.
According to reports, it seems that the staff, which “include 29 PhD economists, an associate economist and an economic analyst, and 15 research associates who are recent graduates from colleges across the country”, may have been spending much of their time focuses on pursuing the DEI agenda instead of doing proper oversight of the banks within their districts.
While the dollar is quickly losing its status as the global reserve currency, actors from a consortium of government agencies are actively pushing the Federal Reserve to implement a digital dollar.
It’s believed that issuing a digital dollar will help restore some credibility with leaders from emerging economy central banks that has been lost due to the widespread weaponization of the currency against foreign governments and individual foreign citizens.
Treasury Under Secretary Nellie Wang has confirmed that a digital dollar implementation is being explored with wholesale CBDC options that include providers of stablecoins. However, the reality is that various CBDC projects have been underway within the Federal Reserve system since the start of the pandemic.
US banks are ramping up in anticipation for the introduction of the FedNow system later this year. Various government agencies actively deny that Fednow is related to CBDC implementation. However, the instant payment service could provide the underpinnings to support institutional transfers that incorporate near real-time settlement.
The ramifications FedNow will have on the remittance industry and the global abandonment of the dollar in favor of local currency trade agreements are being speculated on by industry analysts.
Earlier this year, legislators in Texas became the first to offer a solution against a federal CBDC by introducing legislation to create a state managed gold-backed digital currency.
Texas was also the first state to open a public gold depository where investors can securely vault their wealth.
Several more states are now throwing hats into the fray against a centrally controlled digital dollar.
This week, legislators in North Carolina pushed forward a law that would ban the state’s agencies and institutions from accepting any payments in central bank digital currency (CBDC).
Florida and South Dakota lawmakers are pushing similar legislation as Universal Commercial Code laws emerge as battleground to roadblock a national CBDC.
On Twitter this week, Presidential Candidate Robert Kennedy Jr announced his position against CBDC implementations, decrying that monetary freedom is as important as free speech. In his tweet he cites numerous examples of how Paypal, Visa, Mastercard and GoFundMe have all been weaponized against citizens by both the United States and Canadian governments during the pandemic.
The US economy continues to be hit with a wave of record high inflation. Some analysts see the Feds latest quarter point increase likely leading to period of stagflation across the economy, which had been suggested last year as a possibility by banking and hedge fund executives.
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