FedNow Explained: Is It The END of Financial Freedom?

Fed now is upon us in the coming days The federal reserve's new fast payment System will go live its impending launch Has been met with no shortage of Concerns given its similarities to Central Bank digital currencies what's More concerning however is that most People don't seem to understand what fed Now is or how it works this has resulted In genuine misinformation that has been Used to discredit those who oppose it That's why today I'm going to tell you Everything you need to know about fednow Using information exclusively from the Horse's mouth as you'll soon see the Widespread concerns and opposition are Justified The history of fed now begins in September 2013 when the fed put out a Public consultation paper asking Financial institutions in the United States to give their input on how the Payment system in the country should be Improved this public consultation Resulted in the creation of the So-called faster payments task force in May 2015. in July 2017 the task force Published its final report which Recommended that the FED create a fast Payment system go figure If you watched our video about the Future Financial system that central Banks want to see you'll know that fast Payment systems are analogous to Central

Bank digital currencies or cbdcs this is Primarily because both payment systems Are programmable meaning that Transactions can be controlled by a Central Authority Now in August 2019 the FED finally Announced its plans to create a fast Payment system which is of course called Fed now the timing of this announcement Is significant for many reasons mainly Because Facebook announced its digital Currency project Libra in June 2019. Note that Libra finally died largely Unmourned in early 2022 another thing That happened in June 2019 was a Partnership between the world economic Forum or west and the UN to meet the Sustainable development goals or sdgs in Every country by 2030. for context many Of the dystopian things being pushed Around the world have their roots in the Sdgs including cbdcs Ten days after fednow was announced BlackRock the world's largest asset Manager also published a report that Effectively predicted how central banks And governments would respond to the Pandemic for context BlackRock has a Close relationship with the FED more About that report in the description Coincidences aside the FED revealed the Features of fednow in August 2020. the Video announcing fednow's features can Be found on the Federal Reserve Bank

Services YouTube channel It is the source for everything I just Said minus the weft UN and BlackRock Stuff it's worth a watch if you have the Time now in the video it's revealed that Former fed Governor lail Brainard has Been at the Forefront of the fed's Efforts to develop new payment systems For context lail became a Fed governor In June 2014. as such there's a high Chance she was a key player in the Fednow initiative from the beginning Oddly enough lail resigned from the FED In February this year to become the head Of the United States Economic Council Under President Joe Biden it's not clear Why lail left the fed her term's Vice Chair was only set to expire in three Years time Some have speculated that it was somehow Related to Fed now In any case what is clear is that the Boston branch of the Fed was tasked with Creating fed now this was done under the Supervision of Ken Montgomery the first Vice president of the Boston fed the Other key players in fednow's Development can be seen here but I Should note that it was the work of a 100 person team I should also note that The features of fed now were developed With the help of major financial Institutions in the US These are referred to as the fednow

Community and it boasts over 1600 Members the fednow community will also Decide which features fednow supports in The future Now in August last year the FED Confirmed that it would be launching fed Now in about the middle of this year in March this year the FED announced it Will be launching fed now in July the Announcement was made just a couple of Days after the banking Crisis began Another coincidence I'm sure Anyways there are two things to keep in Mind before we explain how fednow works The first is that the FED had not set a Launch date at the time of shooting so It's possible that fednow has launched By the time you see this video be sure To check this if you haven't already The second thing to keep in mind is that Fednow will be rolled out in phases What's coming in July is just phase one As a result the information in my Explanation may be incomplete or Incorrect if you're watching at a much Later date Unfortunately it's not known when the Next phase will be released I'll come back to what features the fed And the fednow community want to see in The future phases of fed now later in The video before that let's take a look At what's under the hood To keep things simple I'll explain fed

Now as if it were a cryptocurrency you Can think of fed now as being a layer Zero blockchain similar to a crypto like Polka dot this is because it only offers Basic functionality and is use case Agnostic it's possible for financial Institutions to build stuff on top of it For Now fednow's functionality will be Limited to basic transactions the Ability to generate reports based on These transactions the ability to set Limits on transactions the ability to Set limits on accounts and the ability To Blacklist accounts more on all that In a moment Nodes on the fednow network are U.S Banks with a bank account at the FED These bank accounts are called Master Accounts and basically every U.S bank Has one the FED silently published a List of master account holders for the First time late last month I'll leave it In the description if you're interested Now it's important to note that non-bank Entities are not allowed to use fed now Directly non-bang entities can only Access fed now indirectly via banks with A master account This appears to be the number one Question asked by individuals and Institutions alike I repeat only Master Accounts allowed Logically then every transaction made With fednow ultimately involves moving

Money between Master Accounts at the Technical level this involves sending Messages between Master accounts that Funds have been sent or received I'll Leave a detailed explainer video in the Description if you're interested now What's fascinating is that fednow uses The iso 20022 standard for this I say Fascinating because multiple Cryptocurrencies are compliant with the Iso 20022 messaging standard the most Famous of which is xrp as a matter of Fact Ripple joined the iso 20o 2022 Standards body in May 2020. this is Circumstantial evidence to support the Idea that the SEC sued Ripple in December 2020 because xrp was a direct Competitor to fednow this is something We've speculated about a lot on the Channel particularly since the banking Crisis many of the banks that recently Went under had de facto fast payment Systems too Anyways in contrast to existing payment Rails which only operate during banking Hours fed now operates 24 hours a day Seven days a week 365 days a year fed Now also makes it possible to settle Payments instantly rather than the three To five days offered by most existing Payment rails It's currently unknown how many Transactions per second fed now can Process but transaction finality takes

Quote a few seconds and can apparently Take as little as one second however Some transactions can take as long as 20 Seconds which is the max timeout period If a payment is not processed within the 20 second window then you must try again What's interesting is that this payment Timeout clock could lead to issues if The internal time of the two Banks Involved is out of sync Associated Documents suggest that Banks ensure they Use a quote reliable time server The 20 second timeout clock applies to All three participation types offered by Fednow to master account holders you can Think of participation types as being Different types of nodes that Master Accounts can be on the fednow network Each node also comes with transaction Limits and fees the first node type is Customer credit transfer as the name Suggests this type of node can transfer Funds between customers be they Individuals or institutions the Transaction limits for customer credit Transfers are set at 100K per Transaction by default but can be raised To 500k by the node operator obviously This is the Fed now node type that most Of you will be using in other words you Will only be able to transfer 100 to 500k USD per fed now transaction Before you freak out there doesn't seem To be a limit on how many transactions

You can send in a day but again this Could change in the future The second node type is liquidity Management transfer this node type can Transfer funds between financial Institutions to ensure they have enough Money the transaction limits for Liquidity management transfers are 2.5 Million dollars per transaction with a Daily limit of 10 million dollars The third node type is settlement only Settlement only nodes do not process Transactions the only thing they can do Is keep track of transactions in the Fednow system they can also generate Reports based on this information This function is available to the other Two node types as well as you can see Here the cost per transaction is four And a half cents for customer credit Transfers and one dollar for liquidity Management transfers These fees will presumably be shouldered By the financial institution you use to Access fed now along with the monthly Participation fee of 25 for all node Types but back to that ability to Generate reports Associated documents Suggest that it will be possible for all Fed now nodes to generate transaction Level reports this is extremely Important to note because it suggests That there will be no privacy for fed Now users regardless of the node type

On that note we could not find a single Mention of privacy anywhere in fednow's Documentation privacy was also not a Point of discussion in any of the Official fednow videos we watched this Further underscores the possibility that Fed now users will have zero privacy This is probably because of another Problematic feature offered in the first Phase of fed now which is fraud Prevention at Inception fednow will make It possible for financial institutions To create reports about fraudulent Transactions set transaction limits for Certain accounts and Blacklist certain Accounts what's frustrating is that the Fednow operations document published by The FED in June does not reveal what Signs of fraud financial institutions Will be looking for This does make sense considering they Don't want fraudsters to gain the system But it could result in arbitrary account Limiting and blacklisting although it Will initially be up to financial Institutions to decide who they write Reports on who they set transaction Limits for and who they Blacklist this Could change in the future phases of Fednow this is a truly terrifying Possibility because it would give total Control of your bank account to the Federal Reserve This ties in to the Future phases of

Fednow the roadmap in our crypto analogy As I mentioned earlier there are no Timelines for when these phases will Occur nor what features will be included In them I'll also remind you that it's The fednow community that decides which Features are added or removed the Features that could soon become a part Of fednow can be found in videos on the Aforementioned Federal Reserve Bank Services YouTube channel I say this Because some of these features sound Like conspiracy theories I assure you They are not go and check for yourself If you have the time First and foremost lail seem to imply in That aforementioned feature release Video that the end game of fed now is to Evolve it into a cbdc so that the US Dollar can compete with China's cbdc for Now however the focus is on giving Consumers and Banks the services they Want namely fast payments in that same Video another fed official revealed that It will eventually become possible to Set conditions under which a Fed now Transaction would be automatically Rejected This involves tokenization which fednow Will not support in its initial phase But will support in unspecified future Phases newsflash but possible to set Conditions means programmability which Is a key feature of cbdc's not only that

But the fact that fednow will support Tokenization could mean that real-world Assets may become tokenized on its Network if this happens you will own Nothing the FED will own it instead Fednow will also eventually support Cross-border payments in case you're Wondering Anywho in a webinar from September 2020 One of fednow's Architects made a Peculiar comment and that that banks With Master accounts will quote Initially have the option to join as a Settlement node you know the type that Just watches but doesn't process Transactions The way it was said made it sound like Banks with Master accounts will Eventually be obligated to use fednow For all of their payments this would Essentially mean an end to financial Privacy in the United States and Potentially put the financial system in A position where it can be completely Controlled by the Federal Reserve if That wasn't scary enough individuals and Institutions will likely adopt fed now Without thinking twice about the Long-term consequences at the outset FED Now will be benign and even beneficial There's no denying that instant Settlement is desirable After a few years nobody will use the Old payment rails at that point the U.S

Financial system will be perfectly Positioned for capture by the fed and U.S government History has shown that they will not Hesitate to exercise these powers and it All starts with the fraud prevention Measures of fed now which were a point Of focus in that webinar When asked about future fraud prevention Measures one of the fednow's Architects Answered that certain types of payments Could come with different transaction Limits that the FED could have Centralized transaction monitoring Powers and that machine learning could Be used to prevent fraud translation the Bank the fed or the government will Limit how much of certain things you can Buy the bank the fed or the government Will be able to see all your Transactions And the bank the fed and the government Will use machine learning to control Your transactions they won't have to Lift a finger Now the link to that webinar is in the Description timestamp around 20 minutes These are direct quotes This fedno architect also explained that Fednow could be used to issue stimulus During the next Crisis whatever that may Be offering a cbdc a stimulus to ensure Adoption is something else we've Speculated a lot about on the channel

Some would say that this comment Confirms our speculation speaking of Which if you're wondering why Financial Elites are so obsessed with QR codes an Unlisted video on the Federal Reserve Bank Services YouTube channel seems to Have the answer In short existing point-of-sale Transactions are not very compatible With fast payment systems or cbdcs QR Codes however are This same unlisted video suggests that The pace of phase and feature Introduction will depend on how quickly The fednow community can digest them I'll remind you for a second time that It's the FED now community that wants These features and they are actively Pushing for the fraud prevention stuff For what it's worth at least you'll be Able to send and receive payments using Human readable names another feature Under consideration note that you can Keep track of all fednow updates using The fednow Explorer specifically the News center the link will be in the Description for your convenience Anyhow this video wouldn't be complete If we didn't address the elephant in the Room and that's whether fed now will Affect crypto the answer really depends On which crypto you're talking about Recall that fednow was announced shortly After Facebook's Libra was announced

That was actually not a coincidence In the aforementioned feature release Video lail seemed to imply that fednow's Purpose is to replace stable coins and All forms of so-called private money This probably doesn't mean all of crypto Because U.S Regulators don't consider Most cryptos to be money just Commodities or Securities the only Cryptos that U.S Regulators do consider To be private money are stable coins and This is something that fed chairman Jerome Powell reiterated at a recent Hearing To the untrained eye this was taken as a Bullish comment but in the context of Fed now it's quite the opposite That said the September 2020 video about Fed now from the FED specifies that Fednow will co-exist with quote private Sector options it's not clear if this Coexistence extends to stable coins it's Also not something that's been mentioned In more recent videos about fednow from The Fed If stable coins are safe from fed now Then it could be a huge benefit to Stablecoin issuers especially those Based in the United States that's Because they would have top of the line Minting and redeeming capabilities via The banks they use this could make them More competitive with offshore stable Coins

If stable coins are damaged by fed now However then this could do damage to the Crypto Market since almost every crypto Trades against a stablecoin given the Fed's intentions to introduce Tokenization to Fed now we could Eventually see a Fed now stablecoin and It would be interoperable with crypto Via that ISO this is in many ways an Even more concerning outcome because Then it's possible that every Cryptocurrency would trade against a Stable coin that's controlled by the fed This would give the FED total control Over the crypto Market which is Something that they would probably love To have To be honest though the effect of fed Now on crypto pales in comparison to the Effect it's going to have on Financial Freedom in general fednow truly seems to Be a trojan horse to usher in a cbdc System and it's sobering to consider That other central banks have introduced Fast payment systems already I can't stress enough just how Beneficial and benign these fast payment Systems will be to the average person Widespread adoption seems guaranteed and Even those who refuse to adopt it will Be forced to partake via taxes and other Mandatory payments to government Institutions and agencies The only escape from these pro-cbdc

Systems is cryptocurrency but even Crypto could become captured if every Crypto trades against a stablecoin built On a fast payment system This further highlights the need for a Decentralized stable coin of some kind That can ensure crypto remains free from Influence this is going to be easier Said than done but it must be done and Not just for people who hold crypto When the powers of these fast payment Systems are exercised and the average Person becomes aware of what they really Are they will seek Alternatives let's Hope that crypto will still be one of Them And that is all for today's video so if You found it informative smash that like Button to let me know If you want to make sure you don't miss The next one subscribe to the channel And ping that notification Bell also be Sure to share this video with anyone Particularly Americans you think need to See it If you're already stacking sets in Preparation for the fast payment system Apocalypse make sure you're doing so Using a secure Hardware wallet and that You're purchasing those sets through a Trustworthy Exchange You can find discount codes to the Former and up to forty thousand dollars Of incentives for the latter on the coin

Bureau deals page the link will be down In the description as always thank you For watching and I'll see you next time Till then stay cool stay safe and stay Crypto [Music]