The United States government’s plan to launch its own central bank digital currency (CBDC) is not really being received well by the general populace as of now due to various reasons. With that, US presidential candidate Robert Kennedy Jr. proposes Bitcoin as a way to secure the financial sector when the proverbial bubble finally bursts in a long Twitter rant.
The Launch of FedNow
The finance industry is experiencing a rapid transformation with the emergence of cryptocurrencies. In response, the US government has announced the launch of FedNow, a real-time payment system that will be supported by a version of a CBDC. However, there are concerns about the government’s approach to the crypto industry, which is seen to impact the success of FedNow.
Given the alleged tendency of the US government to meddle in the financial affairs and privacy of citizens, FedNow is not exactly a popular proposition right now and populist politicians are having a field day over it.
Robert Kennedy Jr.’s Advocacy for Bitcoin as an Alternative to the Traditional Financial System
In his rather wordy tweet, Kennedy has put forth the use of cryptocurrencies, particularly Bitcoin, as an alternative to the traditional financial system. He believes that cryptocurrencies can provide an escape route for the public from the potential risks and uncertainties of the current financial system, especially during a financial bubble burst.
In addition, the presidential hopeful expressed concerns about the Federal Reserve’s monetary policies and its relationship with big banks. He claimed that the Fed’s supposed collusion with big banks has primarily benefited the so-called “Banksters” at the expense of the public, with $10 trillion of wealth printed over the past 15 years.
The politician argues that Bitcoin’s potential to operate outside the traditional financial system and not be subject to the same risks and vulnerabilities can provide a solution to these concerns.
The US Government’s Crackdown on the Cryptocurrency Industry
Kennedy believes that Bitcoin can act as a safeguard against financial instability and protect individuals’ wealth during economic uncertainty. However, the US government appears to be more inclined towards regulating, controlling, and even restricting the cryptocurrency industry.
The government’s insistence on creating a CBDC has raised concerns about potential implications for civil liberties and privacy. According to him, the instrument could enable the government to monitor people’s financial transactions and personal information, leading to increased social surveillance and control. His views basically echo the statements of Florida Governor and fellow presidential hopeful Ron DeSantis regarding the subject.
Moreover, Kennedy cites crypto investor Nick Carter’s arguments that the US government had an active hand in organizing a coordinated crackdown on the cryptocurrency industry, using various government agencies to force banks to cease working with crypto companies. The crypto investor notes that there have been 15 such incidents since December 3, 2022.
Final Thoughts
Although proponents like Robert Kennedy Jr. see cryptocurrencies as a possible solution to the issues inherent in the traditional financial system, the actions taken by the government suggest that there are still substantial regulatory and legal obstacles to be cleared before cryptocurrencies can be widely adopted as an alternative to traditional finance.