#Is FedNow the First Step Towards Banning Bitcoin?

04/07/2023 13:11 • Blockchain Buzz • 124 views

On April 7th, US presidential candidate Robert Kennedy Jr. believed that the Federal Reserve’s digital payment system “FedNow” was the first step for the government to ban Bitcoin. Kennedy stated that people should not be fooled by FedNow’s initial statement that it was limited to interbank transactions. He pointed out that this could be the first step towards banning and seizing Bitcoin, just as the Treasury did with gold 90 years ago in 1933

US presidential candidate: The Federal Reserve’s digital payment system “FedNow” is the first step for the government to ban Bitcoin

The US Federal Reserve recently announced its plan to launch a real-time payment system called “FedNow”. However, Robert Kennedy Jr., a US presidential candidate, has expressed concerns that this could be the first step towards the government banning Bitcoin. In this article, we will take a closer look at the background of Kennedy’s statement and analyze whether his concerns are valid.
##The Background
On April 7th, 2021, Robert Kennedy Jr. tweeted that the FedNow system could be a way for the government to ban Bitcoin. He pointed out that the Treasury had previously seized gold in 1933, and warned that Bitcoin could be the next target. Kennedy also noted that FedNow’s initial statement that it was limited to interbank transactions should not deceive people.
##Analysis
Kennedy’s concerns are not unfounded. In fact, governments around the world have been cracking down on cryptocurrencies in recent years. China, for example, has banned initial coin offerings (ICOs) and shut down cryptocurrency exchanges. India has also proposed a ban on cryptocurrencies, and many other countries are considering similar measures.
Although the US government has not explicitly banned cryptocurrencies, it has taken steps to regulate them. The IRS treats cryptocurrencies as property for tax purposes, and the SEC has cracked down on ICOs that it considers to be securities. Furthermore, the US Treasury’s Financial Crimes Enforcement Network (FinCEN) requires cryptocurrency exchanges to register as money transmitters and comply with anti-money laundering (AML) regulations.
Given this regulatory environment, it is not impossible that the US government could eventually ban cryptocurrencies like Bitcoin. However, it is unlikely that FedNow is the first step towards such a ban. For one thing, FedNow is not a cryptocurrency. It is a payment system that allows banks to transfer funds in real time. While this could make it easier for the government to monitor financial transactions, it is not clear how it would lead to a ban on Bitcoin.
Furthermore, it is worth noting that the Federal Reserve is an independent agency that is separate from the Treasury. While the two agencies do communicate and coordinate on policy, they have distinct mandates and powers. It is therefore unlikely that the Treasury could use FedNow to ban Bitcoin without the Federal Reserve’s cooperation.
##Conclusion
Robert Kennedy Jr.’s statement that the FedNow payment system could be the first step towards the government banning Bitcoin is not without merit. However, it is unlikely that FedNow itself is a threat to Bitcoin. Rather, it is more likely that any future ban on cryptocurrencies would come from the Treasury or Congress, rather than the Federal Reserve.
##FAQs
1. What is FedNow?
FedNow is a real-time payment system that allows banks to transfer funds instantly.
2. Is FedNow a cryptocurrency?
No, FedNow is not a cryptocurrency. It is a payment system operated by the Federal Reserve.
3. Could the US government ban Bitcoin in the future?
It is possible that the US government could ban Bitcoin in the future, given the regulatory environment and the concerns of some policymakers. However, it is unlikely that FedNow is the first step towards such a ban.

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