Bitcoin Magazine received a cease-and-desist letter from the Federal Reserve last week to suppress the expression of dissent towards its newly introduced FedNow interbank clearing and settlement service. The United States’ central banking system, the Federal Reserve, claims that the products sold by Bitcoin Magazine, which parodies its services, do not fall under the definition of protected speech. Instead, it is deemed an unauthorized encroachment upon its image and trademarks.
Did Bitcoin Magazine Mislead Its Readers?
According to the Federal Reserve, it has been alleged that Bitcoin Magazine utilized the trademark without obtaining proper authorization. This purported action is believed to have been undertaken to mislead readers into erroneously perceiving a connection between the publication above and the central bank. Contrary to prior Bitcoin Magazine coverage on the matter, specifically about the Federal Reserve and its FedNow service, an alternative perspective emerges.
Why Does the Government Need FedNow?
“FedNow” refers to the Federal Reserve’s real-time gross settlement (RTGS) service, designed to facilitate instant payment transactions in the United States. According to Isabella Santos from Bitcoin Magazine, the service in question was identified as a scam during her coverage of its launch on an episode of Bitcoin Backstage.
The assertion posits that the government seeks to maintain control over individuals, their businesses, and the wider populace. The entity in question would be directly involved in all interbank transactions made possible by its system, meticulously watching over every individual payment transaction.
Bitcoin Magazine has extensively reported on the developments preceding and after the official launch of FedNow in July of this year. The recently introduced service by the Federal Reserve is designed to provide banks and credit unions, regardless of their scale, with the capability to enable immediate money transfers for their clients.
According to the Federal Reserve, it has been stated that transactions facilitated through FedNow can be executed continuously, without interruption, throughout the entirety of a year, encompassing all 365 days.
During the initiative’s launch, the FedNow Reserve developed the Federal Service to enhance the practicality and convenience of routine payments in the foreseeable future. The benefits for individuals and businesses will grow as more financial institutions use this new tool. For example, salaries will be sent to individuals more quickly, and companies can get their money immediately after getting paid invoices.
What Are the Features of FedNow?
The FedNow initiative, although distinct from the introduction of a new currency or central bank digital currency (CBDC), facilitates an enhanced level of centralized control for the Federal Reserve over the financial and banking system. The US dollar exhibits characteristics akin to a comprehensive central bank digital currency (CBDC), given the prevalent utilization of online platforms for payments and banking transactions in contemporary times.
Granting the Federal Reserve and other financial institutions the authority to exercise oversight over one’s payment transactions, monitor one’s financial records, terminate one’s accounts in the event of ideological divergence, impose restrictions on cash withdrawals, and enact additional measures, among others.
Bitcoin presents a decentralized alternative to the banking above paradigm. The Bitcoin network functions continuously, operating around the clock, every day of the year, without reliance on a trusted intermediary.
The system works permissionless, thereby rendering the Federal Reserve or any other entity on a global scale incapable of impeding individuals from utilizing it to transmit and receive monetary transactions. The Lightning Network enables Bitcoin users to engage in cost-effective and expeditious transactions, facilitating swift settlement between parties involved.
This new way of thinking about money is a big step from the old way of doing things because it has a unique currency and a truly decentralized network that does not need permission to work. Bitcoin is characterized by a finite supply, which adheres to a predetermined hard cap of 21 million BTC.
This starkly contrasts the US dollar, which lacks such limitations and is subject to an unlimited supply. The FedNow service represents a notable progression towards establishing a financial framework wherein individuals’ monetary resources are subject to control and devaluation.
Bitcoin enables individuals to exercise complete authority over their financial resources, facilitating unrestricted transactions and providing the opportunity to accumulate wealth in a currency that exhibits long-term value appreciation.