According to the politician, the central bank, the issuer of the asset, can limit the personal and financial freedoms of citizens

​Kennedy Jr. says possible “financial slavery” because of the digital dollar

07.04.2023 - 10:40


3 min

What’s new? Lawyer and member of the US Democratic Party Robert Francis Kennedy Jr. criticized the idea of launching a central bank digital currency (CBDC) and the FedNow payment system by the Federal Reserve System (Fed). According to the politician, these actions would lead the country into “financial slavery and political tyranny” because the central bank would have the ability to monitor transactions and control how the digital dollar is used.

What is known about the Fed’s plans? The Fed’s FedNow payment service is scheduled to launch in July 2023. It is designed to streamline instant payments between banks and their customers. According to Fed Chair Jerome Powell, stablecoins and the digital dollar will have different launch goals than FedNow and cryptocurrencies that are not backed by liquid reserves. FedNow is designed for instant payments between traditional financial institutions using fiat dollars, while CBDC itself would be legal tender.

What are the dangers of launching a CBDC? The politician noted that all monetary transactions are anonymous, while CBDC would allow the government to monitor all private financial transactions. And the central bank would gain the power to impose restrictions on citizens’ transactions, deciding where a person can send money, where they can spend it, and when it will expire.

According to Kennedy, a CBDC tied to digital ID and social credit score would allow the government to freeze assets and restrict spending only on certain authorized items if users fail to comply, particularly regarding vaccinations.

The politician believes that the launch of a CBDC is the first step toward banning and confiscating bitcoin, similar to how it was with gold in 1933.

Kennedy Jr. is the nephew of the 35th President of the United States, John F. Kennedy, and is also a contender in the 2024 presidential election from the Democratic Party. An intraparty vote in the primaries for the nomination will take place at the National Convention in July 2024.

Earlier, Republican US Senator Ted Cruz, who is also running for president, called for a ban on the digital dollar. According to the official, the asset could be used by the central bank as a tool of financial supervision, which would violate the privacy of citizens. Meanwhile, earlier Jerome Powell reported that the decision on the expediency of using the asset has not been made yet, and the regulator has no plans to launch it in the near future.

According to the American think tank The Atlantic Council, 11 countries, including China, are working on the implementation of a national digital currency. Another 114 nations are considering the creation of such an asset.

Subscribe to Getblock Magazine and stay up to date with the latest news from the world of cryptocurrencies and the digital economy