Has the Federal Reserve Espoused the View That One of Money's Functions is a Means of "Social Control"?

Economist, William Michael Cunningham, has proposed that one of money's functions is a "means of social control."

Psalm 31:24 (KJV)

²⁴ Be of good courage, and he shall strengthen your heart, all ye that hope in the Lord.

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Has the Federal Reserve Espoused the View That One of Money's Functions is a Means of "Social Control"?

Published by the Federal Reserve System is a white paper, a comment to Docket No. OP-1670, Federal Reserve Actions to Support Interbank Settlement of Faster Payments. This comment is authored by economist and author, William Michael Cunningham, who proposes that one of money's functions is a "means of social control."

In this public document, Mr. Cunningham comments on the Federal Reserve’s previously issued Notice (issued prior to the launch of FedNow in July 2023), which states:

"The Board of Governors of the Federal Reserve System (Board) has determined that the Federal Reserve Banks (Reserve Banks) should develop a new interbank 24x7x365 real-time gross settlement service (FedNow) with integrated clearing functionality to support faster payments in the United States. The Board is requesting comment on modifications to the FedNow Service or other actions that would further reduce or eliminate potentially adverse effects without significantly compromising the anticipated public benefit associated with the service."

As noted above, the Federal Reserve did, in fact, launch on July 20, 2023, this interbank 24x7x365 real-time payment and settlement service, called the FedNow^sm Service, to support faster payments in the United States.

Mr. Cunningham’s comment concerns the social impact of the FedNow Service. He makes two basic claims: (1) that money is a means of social control, and (2) that the FedNow Service was launched in response to the threat that cryptocurrencies pose to the traditional monetary system.