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The Federal Reserve recently stirred up controversy by attempting to quell criticism of its FedNow service from Bitcoin Magazine.
It sent the magazine a cease and desist letter, claiming it had infringed upon the bank’s image and trademarks without authorization.
The center of this dispute is the alleged misleading connection between the publication and the central bank insinuated by Bitcoin Magazine’s merchandise.
Bitcoin Magazine’s Isabella Santos, however, voiced stark criticism of FedNow, calling it a scam that enables the government to control and track every bank transaction.
The FedNow service, launched in July, promises to allow banks and credit unions to facilitate immediate money transfers for their customers, operating 24/7, 365 days a year.
FedNow stops short of being a new currency or a Central Bank Digital Currency (CBDC), but it does hand the Federal Reserve further centralized control over the financial and banking system.
FedNow’s launch has raised concerns about the increasing control and surveillance over personal finances, including the ability to track payment history, control payments, and limit cash withdrawals.
Bitcoin, on the other hand, offers a decentralized alternative to this banking model, operating continuously without requiring a trusted third party.
It’s a permissionless system—the Fed, or any entity, lacks the ability to limit its use for sending and receiving assets of value.
Bitcoin’s Lightning Network (Lightning strikes: Major vulnerability exposed) also enables Bitcoin users to send BTC to each other quickly and at minimal cost, thus achieving instant settlement.
A notable feature of Bitcoin is its hard cap supply, which ensures there will never be more than 21 million BTC, unlike the US dollar, where there is no supply limit.
This enables Bitcoin users to have full control of their digital assets and to save in a currency that appreciates over time, unlike the FedNow service, which critics argue locks people into a depreciating financial system. Read more here.
Scarcity And Sovereignty: How Does Zucoin Improve Upon Bitcoin’s Solution To Value?
The famous words of Robert Frost, “Two roads diverged in a wood, and I— I took the one less traveled by, and that has made all the difference.” beautifully illustrates our current predicament in the financial realm.
We face a choice between the familiar route of centralization exemplified by FedNow and the uncharted but promising route of decentralization, represented by digital currencies such as Zucoin and Bitcoin.
Recent disputes over the Federal Reserve’s cease and desist letter to Bitcoin Magazine underscore the conflict between these two financial paradigms.
Initiated by the Federal Reserve, FedNow provides the benefit of immediate money transfers, functioning 24/7 throughout the year.
But this convenience carries a hefty cost—intensified monitoring of personal finances and amplified power for the central bank in the banking system. This is a cost to consider.
On the other hand, there’s Zucoin.
Its progress towards decentralization grants users more control over their transactions and significantly diminishes the risk of mandatory mass external monitoring.
Users will be able to setup or use nodes that publicly denounce this sort of log keeping, as many VPN services do.
The aim of Zucoin and its Splitchain network is to ensure quick transaction settlements and have it function all day, every day, without conceding control to any centrally trusted body.
Zucoin, an alternative approach to scaling crypto networks like Bitcoin’s Lightning Network, enables real-time, no-cost transactions, making transfers easier and more economical, however without the Lightning Network’s ongoing track record of issues.
Another commonality between Bitcoin and Zucoin is their limited supply—21 million for Bitcoin and 100 million for Zucoin.
It’s a characteristic that helps to maintain value and rarity in a time of unrestricted central bank “money printing” by issuing more debt, weakening a nation’s local currency.
Scarcity strengthens value.
This is true from commodity markets to exclusive luxury goods.
George Orwell once said, “In a time of universal deceit, telling the truth is a revolutionary act.”
In an era where central banks persist in controlling the efforts of our existence, the truth-driven network of Bitcoin and Zucoin becomes that revolutionary act, providing systems without the need for permission, where transactions can be processed reliably, without interference from any central body.
It’s an asset revolution in action.
Critics suggest that FedNow traps people in a depreciating financial system, making them paddle harder and longer for less, while Zucoin, sharing some key traits with Bitcoin, focuses on limited supply.
As we find ourselves at this historical junction, the decision between FedNow’s centralized control and crypto’s freedom is not just a choice of convenience, but a statement of the kind of world we want to live in.
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Peter & Rob
Disclaimer: Of course, this is not advice, financial or otherwise. It’s also important to consider the risks and challenges associated with any potential benefits.