The government’s crackdown on crypto might come back to bite them! And with the launch of the US CBDC through the FedNow initiative finally confirmed, it seems that the crypto market is in for some major upheavals. But here’s the twist: the launch of CBDCs could end up making Bitcoin even more popular than it already is!
The rollout of the FedNow and CBDCs is slated for July this year, but what does this mean for Bitcoin and altcoins?
On the one hand, the launch of CBDCs could make transactions faster and cheaper by cutting out middlemen. It could also make it easier for the government to distribute relief funds. But on the other hand, some people are already worried that this could lead to more people turning to Bitcoin and other altcoins instead. So what’s the safest option when CBDCs roll out?
A dystopian monetary future?
One of the biggest concerns about FedNow revolves around security and freedom. The U.S. is going down the same route as China as far as extreme control over its citizens is concerned. U.S. presidential candidate Robert F. Kennedy Jr highlighted some of those concerns in a recent statement.
The claim that FedNow is not the first step toward a CBDC would be more easily digestible were we not aware of the Biden administration’s steady barrage of hostile broadsides against cryptocurrencies.
Between 2008-22, the Fed partnered with a handful of big banks to print $10…
— Robert F. Kennedy Jr (@RobertKennedyJr) April 10, 2023
Kennedy notes that CBDCs might become the ultimate tool for the government to implement high levels of social surveillance and control. This is reminiscent of how China has a social score that the government uses to penalize people. He also took note of the government’s recent effort to prevent crypto companies from accessing the banking industry.
Notably, monetary control is one of the main tools through which the government ensures control over the masses. Crypto offers an avenue through which people can escape that control. This may explain why the U.S. government is against crypto.
A hybrid approach?
Looking at both sides of the coin, it is now clear that being on both sides of the divide is likely the most optimal path. This is because the government will do whatever it takes to maintain power and that is currently manifesting as preventing crypto from accessing the traditional banking system. In other words, people will need the new system to buy regular goods and services.
On the other hand, having some funds in crypto may offer some degree of freedom from government overreach. The underlying concerns about CBDCs might be powerful enough to trigger an influx of demand for Bitcoin and altcoins.
In case those concerns become reality, the demand and value of crypto assets with low circulating supply may balloon over time.
