Why Bitcoin can become even more important once FedNow is launched
- The government’s efforts against crypto may eventually backfire.
- A look at the safest option for when the CBDCs will eventually roll out.
It is finally happening. The U.S. recently confirmed that it is launching its CBDC through the FedNow initiative. But this launch might popularize Bitcoin even more and here’s why.
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How many are 1,10,100 BTCs worth today?
It was recently confirmed that the FedNow and CBDC rollout will commence in July this year. But what kind of impact will this launch have on Bitcoin and altcoins?
Well, the launch may have some advantages such as facilitating faster transactions and lower costs due to fewer intermediaries. It will also be easier for the government to roll out relief funds through CBDCs. However, there are already concerns about it, which may end up pushing more people towards Bitcoin and altcoins.
A dystopian monetary future?
One of the biggest concerns about FedNow revolves around security and freedom. The U.S. is going down the same route as China as far as extreme control over its citizens is concerned. U.S. presidential candidate Robert F. Kennedy Jr highlighted some of those concerns in a recent statement.
The claim that FedNow is not the first step toward a CBDC would be more easily digestible were we not aware of the Biden administration’s steady barrage of hostile broadsides against cryptocurrencies.
Between 2008-22, the Fed partnered with a handful of big banks to print $10…
— Robert F. Kennedy Jr (@RobertKennedyJr) April 10, 2023
Kennedy notes that CBDCs might become the ultimate tool for the government to implement high levels of social surveillance and control. This is reminiscent of how China has a social score that the government uses to penalize people. He also took note of the government’s recent effort to prevent crypto companies from accessing the banking industry.
Notably, monetary control is one of the main tools through which the government ensures control over the masses. Crypto offers an avenue through which people can escape that control. This may explain why the U.S. government is against crypto.
A hybrid approach?
Looking at both sides of the coin, it is now clear that being on both sides of the divide is likely the most optimal path. This is because the government will do whatever it takes to maintain power and that is currently manifesting as preventing crypto from accessing the traditional banking system. In other words, people will need the new system to buy regular goods and services.
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On the other hand, having some funds in crypto may offer some degree of freedom from government overreach. The underlying concerns about CBDCs might be powerful enough to trigger an influx of demand for Bitcoin and altcoins.
In case those concerns become reality, the demand and value of crypto assets with low circulating supply may balloon over time.