Former Texas congressman, Ron Paul is once again in the spotlight. He is as of present aiming at the new real-time digital payment system that was proposed by the US Federal Reserve last week. The Federal Government has brought the proposal up as an innovative solution for government and media voices and the crypto sphere.
Many of the industry enthusiasts have shown disinterest, and Paul is also not impressed. He maintains that the implementation of the proposed system will not only crowd out competing protocols like Bitcoin but also place even more power in the hands of an already dangerously incompetent Federal Government.
The US Federal Reserve through a press release issued on 5 August announced that it was developing a new round-the-clock real-time payment and settlement service called the FedNow to support faster payments in the United States. While fed already works with the private sector to provide such services, FedNow will be available 24/7.
The CNBC has already cited instant cheque clearance and cost reduction as a nice bonus, but Ron Paul does not seem to agree. He has followed to release a statement to campaign for Liberty.org yesterday, that reads in part “consumers already have numerous options to make real-time payments to the federal reserve’s decision to begin work on a central bank-run and controlled real payment system, what competitive Enterprise Institute’s senior fellow John Berlau calls ‘FedNow’ is baffling”.
Even so, competition can be very good for consumers and value holders. Enthusiasts like Ron Paul point out that this competition is a very real direct threat to Central banks and governments who would wish to maintain a violent monopoly on the money supply.
The Federal Reserve has made it clear that the new payment system is set to be rolled out in 2023 or 2024. Federal Reserve board of governor Lael Brainard claims;
“Everyone deserves the same ability to make and receive payments immediately and securely and every bank deserve the same opportunity to offer that service to the community. “
What he seems to be missing is that, according to Dr. Ron’s diagnosis, centralized violence-backed convenience is not anything wonderful or even to be celebrated. It is almost as if talking about the convenience of never having to walk long distances anymore because luckily, the state has broken both of your legs. Should violence but Fiat powers continue in creating centralized CBDCs pushing the agenda to remove paper money from societies worldwide in combination with for building crypto competition, the masses could soon be feeling the inconvenience of total financial immobility. With all this in view perhaps it is best for the fed to heed doctor Ron Paul’s orders this time around, and let the medicine of free-market competition do its work.