Just weeks after Elizabeth Warren introduced legislation to expand the Federal Reserve's authority into real-time payments, the Fed on August 5 announced its intent to create a real-time payments system by 2024.
The Federal Reserve also participates in the U.S. payments system.
The Fed's real-time service will not be compatible with those offered by private sector competitors.
Its incompatibility will mean that customers will have to choose between the Fed and the private sector alternatives, or choose both and pay twice.
In these circumstances, potential customers would likely choose the Fed, since it is the regulator of the entire market, and the American people would end up with a single government monopoly controlling the market.
This legislation states that the Fed should only enter a new market to provide services if "The service is one that other providers alone cannot be expected to provide with reasonable effectiveness, scope and equity." That is ostensibly why Sen. Warren introduced the Payments Modernization Act on July 24: to "Clarify" that the Fed has the authority to enter the real-time payments business.
Based on the Fed's August 5 press release it now appears that the Fed is intent on moving forward regardless of whether or not her bill passes.
https://spectator.org/stopping-the-elizabeth-warren-federal-reserve-power-grab/
The Federal Reserve also participates in the U.S. payments system.
The Fed's real-time service will not be compatible with those offered by private sector competitors.
Its incompatibility will mean that customers will have to choose between the Fed and the private sector alternatives, or choose both and pay twice.
In these circumstances, potential customers would likely choose the Fed, since it is the regulator of the entire market, and the American people would end up with a single government monopoly controlling the market.
This legislation states that the Fed should only enter a new market to provide services if "The service is one that other providers alone cannot be expected to provide with reasonable effectiveness, scope and equity." That is ostensibly why Sen. Warren introduced the Payments Modernization Act on July 24: to "Clarify" that the Fed has the authority to enter the real-time payments business.
Based on the Fed's August 5 press release it now appears that the Fed is intent on moving forward regardless of whether or not her bill passes.
https://spectator.org/stopping-the-elizabeth-warren-federal-reserve-power-grab/
No comments:
Post a Comment