Is Cash App Dead?

With the recent news about Cash App founder Bob Lee’s demise, is the Cash App dead along with financial freedom as we know it? 

Will CBDCs ruin third-party payment systems like Cash App?

The advent of Central Bank Digital Currencies (CBDCs) is unlikely to eliminate Cash App or other comparable mobile payment services. However, CBDCs may have similar features, such as the capacity to make digital payments, but they are likely subject to various rules. As a result, they may provide a different level of ease and flexibility than a mobile payment app such as Cash App.

Furthermore, it is essential to note that Cash App partially depends on its ability to conduct digital payments. Other advantages of the app include the option to buy stocks and Bitcoin, which CBDCs may not provide. Furthermore, Cash App’s appeal stems partly from its ease of use and user-friendly interface, which CBDCs may need help replicating in the short run.

However, introducing CBDCs may increase competition in the mobile payment industry, affecting Cash App’s user base and income streams. Finally, the influence of CBDCs on Cash App will be determined by several factors, including the CBDCs’ specific features and laws and the continued evolution of the mobile payment sector.

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FedNow to launch in July of 2023

The Federal Reserve is scheduled to launch FedNow, an instant payment service, between May and July 2023, the central bank’s most apparent timeline for a new system allowing US payments to be settled in seconds.

The FedNow service may also eliminate the need for a central bank digital currency or CBDC. What is FedNow?

“The FedNow Service will transform the way everyday payments are made throughout the economy, bringing substantial gains to households and businesses through the ability to send instant payments at any time on any day, and the funds being immediately available to recipients to make other payments or manage cash flow efficiently,” said Fed Vice Chair Lael Brainard in a speech on Monday.

The Fed has been testing the system with several banks and institutions. Still, Brainard has urged financial institutions, service providers, and software companies to embrace the FedNow Service to ensure the system runs appropriately next spring.

“The moment has come for all major stakeholders…to commit the resources required to facilitate rapid payments,” Brainard added.

FedNow, which will allow consumers and companies to transmit payments instantaneously, may provide some of the same advantages as a central bank digital currency.

Fed Governor Michelle Bowman has stated that FedNow may provide many of the same benefits as a Federal Reserve-issued digital dollar. Senior administration officials have also suggested using the FedNow service instead of a CBDC. The Fed has produced a CBDC study but has yet to conclude whether the US should adopt one.

Officials are considering what needs a CBDC might address after the FedNow system is released.

I do not care what they say; I do not trust this system of payment transactions because it violates our financial freedom as we know it.

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How does this tie into the Cash App?

Cash App can use BitCoin and other digital currencies other than your bank account, which makes this app versatile and threatening depending on your angle.

With the competition wiped out, i.e., Bob Lee, the system can advance in implementing the FedNow payment system to keep tabs on our every move while freezing the accounts of many they secretly dislike. 

Furthermore, this will accelerate the decentralization of digital currency for FedNow to roll out its centralized version for total control.

This fast-approaching system is Orwellian in nature and does not favor financial freedom. Is the Cash App dead? Only time will tell.

In summary

The past six months have told us a lot about the financial community. We witnessed the deaths of a few crypto billionaires in a short span, including the recent late Bob Lee.

I do not know the future of humanity, but I will say this. Prepare for a rough landing, monetarily speaking, because what we are all witnessing now is unprecedented between inflation and the lingering question; is Cash App dead? The clock is ticking…