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FedNow, Considered To Lay The Groundwork For a US CBDC, Launches in July

A controversial plan.

FedNow - a new US Federal Reserve's payments system, considered by some to be the initial but concrete step to introducing a central bank-controlled currency (CBDC) - was set to launch on July 1 but is now set to launch in late July, but not without causing scathing criticism and controversy.

For right now at least, the Fed is being careful to not admit to anything of the kind - that is, that FedNow is the introductory phase to an eventual US CBDC.

FedNow is officially explained as an around-the-clock payments system that will speed up transfers both between business and the financial sector, but also give the private sector "an alternative" supported by the government, of platforms that are designed to accomplish the same task.

Back in early April, this institution said that FedNow was not there to replace cash - that bane of many a government's existence - and said no decision had yet been taken on a CBDC, "promising" this wouldn't be done without the consent of both Congress and the government - "ideally" via a specific law.

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