The Federal Reserve Targets bitcoin Magazine’s Criticism
Last week, the Federal Reserve retaliated against bitcoin Magazine for its bold critique of the recently launched FedNow interbank clearing and settlement service. Instead of engaging in dialogue, the central bank of the United States decided to issue a cease and desist letter, accusing bitcoin Magazine of unauthorized infringement on its image and trademarks.
The Federal Reserve’s claim is that bitcoin Magazine’s parody merchandise misleadingly suggests an association with the central bank. However, previous coverage from bitcoin Magazine has clearly conveyed a different narrative regarding the Federal Reserve and its FedNow service.
The Federal Reserve’s Allegation
In an episode of bitcoin Backstage, Isabella Santos, a prominent reporter for bitcoin Magazine, shed light on the true nature of FedNow. “What is a FedNow? It is actually a scam,” Santos asserted. She goes on to explain that the government’s objective is to maintain control over individuals, their businesses, and everyone else. Under the Federal Reserve’s system, every bank transaction would be monitored, leaving individuals devoid of privacy.
bitcoin Magazine has diligently covered the developments surrounding the launch of FedNow since its introduction in July. The service aims to revolutionize money transfers by facilitating instantaneous transactions for customers in banks and credit unions of all sizes. According to the Federal Reserve, these transactions can be executed round the clock, 365 days a year.
Federal Reserve Chair Jerome Powell’s Stance
“The Federal Reserve built the FedNow Service to help make everyday payments over the coming years faster and more convenient,” Federal Reserve Chair Jerome Powell stated during the launch. He emphasized how this new tool would benefit individuals and businesses by enabling instant paycheck receipts or immediate access to funds upon invoice payment.
While FedNow is not a new currency or central bank digital currency (CBDC), it does grant the Federal Reserve more control over the financial and banking system. Some argue that the US dollar is already close to being a fully-fledged CBDC due to the prevalence of online payments and banking activities. This system allows the Fed and other banks to manipulate and monitor transactions, restrict cash withdrawals, and potentially close accounts based on dissimilar viewpoints.
A Decentralized Alternative: bitcoin‘s Role
bitcoin emerges as a decentralized alternative to this worrisome banking framework. Operating nonstop, without relying on a trusted intermediary, the bitcoin network promotes permissionless transactions. Neither the Federal Reserve nor anyone else possesses the authority to impede individuals from utilizing bitcoin for their monetary transactions. Additionally, the Lightning Network facilitates almost costless and instantaneous BTC transfers between users.
What sets this innovative financial system apart goes beyond its decentralized and permissionless nature; it lies in the currency itself. Unlike the US dollar, which has an infinite supply, bitcoin has a finite supply, capped at 21 million BTC. The FedNow service appears to cement individuals into a depreciating and controlled monetary system. In contrast, bitcoin empowers users to regain control over their finances, transact freely, and save in a currency that appreciates over time.
### News source: bitcoinmagazine.com