17 July 2023
The introduction of Central Bank Digital Currencies (CBDCs) is overshadowing discussions about traditional currency changes like the penny or new dollar coins. CBDCs, digital versions of a country’s physical currency issued by central banks, aim to support financial services and replace much of the physical currency. The Federal Reserve’s FedNow service, launching soon, will enable instant payments and operate 24/7. While it won’t be a consumer-facing app, it will allow banks to move money instantly. Over 50 financial institutions, including JPMorgan Chase and Wells Fargo, are early adopters. FedNow’s implementation is optional for banks, but it promises faster and easier money management for individuals. However, concerns about privacy arise as every transaction will be recorded. The war on cash and the shift toward digital currencies favor big businesses over small ones, leading to potential long-term ramifications. Skeptics of government control and high-tech advancements worry about the erosion of personal freedom. The future of cryptocurrencies is also intertwined with government regulations and recognition. FedNow could be seen as a Trojan Horse for a CBDC system, gradually accepted by most people and potentially enforced for dealings with official agencies. In essence, not everyone views increased control as desirable, and the shift towards digital currencies further reinforces the notion that governments favor large corporations over small businesses, as they are easier to regulate. The most effective resistance against the war on cash is to advocate for the use of physical currency, particularly for small transactions with local establishments.