Yes, I heard that too.
Can those PhDs be so arrogant not to have at least some pause when someone like Caitlin issues such a warning?
Caitlin covered this on a recent podcast with Laura Lin and Meltem, but this is the point most people seem to be missing. The velocity that FedNow could enable could be catastrophic to banks.
The lack of reserves + instant transfer could cause bank runs that make SVB look tame. Any move that banks make to limit this velocity will immediately trigger people to scream CBDC lockdown, which they are already looking for, and that could cause a collapse in trust for that reason.
It’s going to be a fascinating shitshow.
https://twitter.com/caitlinlong_/status/1643969160278573056?s=21
Discussion
It’s crazy. They are trying to react to the appeal of stable coins and crypto trading 24/7/365 and they seemingly don’t understand how much the friction in the legacy system protects them from some very fast moving scenarios they aren’t prepared for.
I usually can’t stand Meltem, but she and Caitlin made some very good points about how this big ball of fast moving money is something few people appreciate.