A financial expert has warned that FedNow lays out the foundation for a central bank digital currency by centralizing all participating banks under the Federal Reserve.

The Federal Reserve on Wednesday announced a July launch of its FedNow service, which will enable all U.S. banks to offer instant payments 24/7, and will constitute the infrastructure of a central bank digital currency (CBDC) by linking each banking node directly to the Federal Reserve, according to financial experts.

FedNow “will enable all the banks — any bank in the United States, not just the big ones — to offer instantly available funds in real-time payments to their customers”

“Eventually, every single economic participant has an account directly with the Federal Reserve, the central bank, and then you don’t need any of the decentralized nodes of the financial system, the previously existing banks,”