Why do people keep calling fed now a CDBC? No one is going to use it on the day to day. It’s just going to be an up to date version of fedwire. Banking privacy is already shit. FedNow isn’t actually making it any worse.
Discussion
Good point
It’s the base for cbdc. It’s for individuals too. Only a start of worse things to come.
I just don’t see the logic there. FedNow is a long overdue improvement of an old shitty system. It doesn’t fundamentally change any aspect about the banking system that paves the way for CBDCs. If a real CBDC came tomorrow it would be implemented with or without FedNow. This is just some weird form of fear mongering that I don’t understand.
FedNow could be a catalyst for systemic issues in the banking system as highlighted by Caitlin Long in all her work focusing on banking regulation, but the link to CDBCs is tenuous as best.
I think it was Pierre Rochard on the Investors Podcast #[4]​ , who recently pointed out that the distraction of being worried about CBDCs makes people forget that the banking system already has pretty full transparency into your daily use of the banking system. Unless you are the rare person who uses case for everything you already don’t have much privacy.
Crises are created by fiat , when they have crashed the banks against the wall cbdcs are presented as the solution.