RFK Jr. and Ron DeSantis Slam FedNow: 2023 Presidential Hopefuls Express Strong Opposition

Presidential Hopefuls RFK Jr. and Ron DeSantis Express Concerns about FedNow and CBDCs

Presidential hopefuls Robert F. Kennedy Jr. (RFK Jr.), the nephew of former president John F. Kennedy, and Ron DeSantis, the Republican Governor of Florida, are raising objections to the Federal Reserve’s FedNow payments system, claiming it could pave the way for a central bank digital currency (CBDC).

In an April 11 Twitter thread, RFK Jr. expressed concerns about CBDCs, describing them as “the ultimate mechanisms for social surveillance and control.” He questioned the Fed’s claims that FedNow wouldn’t be used to facilitate a CBDC and criticized the Biden administration’s stance on cryptocurrencies like Bitcoin, stating that they provide an “escape route from the splatter zone when this bubble invariably bursts.” He accused the administration of colluding with banks to maintain control over financial markets.

RFK Jr. filed his candidacy documents on April 5 and has been vocal about his opposition to CBDCs, stating that they could lead to “financial slavery and political tyranny.”

FedNow is a 24/7 instant payments system set to launch in July, aimed at speeding up transfers between financial institutions and businesses and providing a government-backed alternative to private sector networks.

The Fed’s Stance on FedNow and CBDCs

The Federal Reserve has downplayed the possibility of integrating FedNow with a CBDC. In response to frequently asked questions on April 8, the Fed stated that “no decision” has been made to issue a CBDC and that it would require clear support from Congress and the executive branch through a specific authorizing law.

Governor DeSantis’ Opposition to CBDCs

Florida’s Republican Governor Ron DeSantis has also expressed concerns about CBDCs and has called for a ban on CBDCs in Florida. On April 11, he tweeted that major policy changes require specific authorization from Congress as per the constitution, and unaccountable institutions should not be able to impose a CBDC on Americans. He stated that CBDCs could be abused and referred to them as “wolves” that come as wolves.

DeSantis, who is reportedly considering a presidential run, has been pushing back against CBDCs, citing concerns over surveillance and control of citizens.

Counterarguments on Privacy Concerns

Some experts disagree with the privacy-related concerns raised by RFK Jr. and DeSantis. Aaron Klein, a former United States Treasury official and chief economist at the Senate Banking Committee, stated in an interview with NBC News on April 7 that current anti-money laundering and terrorism financing laws already require financial institutions to report transaction data, and a CBDC would not encroach on privacy any further. He also emphasized in an interview with AFP Fact Check on April 11 that FedNow is solely focused on speeding up existing Fed payment rails and that there is no difference in privacy or surveillance compared to using a Visa card or a CBDC. He stated that FedNow and CBDCs are unrelated to each other.