Andrew Zaitlin of Moneyball Economics is out with a new teaser for his newsletter Sector Alpha Report.
In this report he hypes up what he calls his "#1 stock for playing the FedNow revolution." It's in his report The FedNow Profit Report.
In this video I discuss this report and shed a little light on the Fednow program.
Transcript Of Video
Andrew Zatlin's entire Fednow presentation is talking about a switch in the way banking is down, which is being spearheaded by the Federal Reserve.
FedNow is a real-time payment system developed and operated by the Federal Reserve in the United States. It is designed to provide safe, efficient, and instant payment capabilities for individuals and businesses, allowing them to send and receive funds in real-time, 24 hours a day, seven days a week, including weekends and holidays.
Traditionally, payment systems in the United States have relied on batch processing, which means that transactions are settled in groups and can take several hours or even days to complete. FedNow aims to address this limitation by offering immediate settlement and availability of funds, enhancing the speed and convenience of payments.
The introduction of FedNow is intended to support various use cases, such as person-to-person payments, business-to-consumer transactions, business-to-business transfers, and emergency disbursements. It is expected to provide a secure and reliable infrastructure for faster payments, enabling financial institutions and payment service providers to offer real-time payment services to their customers.
FedNow was first announced by the Federal Reserve in August 2019, and the system is currently under development. The Federal Reserve plans to launch FedNow in phases, with an initial pilot program expected to be introduced in 2023. The full-scale nationwide launch of the FedNow service is anticipated to occur by the end of 2024 or early 2025.
One of the main things Andrew is trying to get across is the digital dollar will be coming to replace physical money and the FedNow program is the beginning of this.
Is this true?
While the introduction of FedNow represents a significant development in the payment system infrastructure, it is important to note that it is not directly linked to the creation or implementation of a digital currency.
FedNow is primarily focused on improving the speed and efficiency of existing payment systems, providing real-time settlement capabilities. It is designed to facilitate faster and more convenient transactions between individuals and businesses within the existing financial framework.
However, the concept of central bank digital currency (CBDC) is a separate and distinct initiative that some central banks around the world are exploring. CBDCs are digital forms of sovereign currency issued by central banks and are intended to serve as a digital equivalent of physical cash. CBDCs, if implemented, would be a new form of currency and a digital representation of a country's fiat money, issued and regulated by the central bank.
While the Federal Reserve and other central banks have been researching and exploring the potential benefits and risks of CBDCs, there is currently no definitive plan or timeline for the implementation of a digital currency in the United States. The development of a CBDC would involve complex considerations, including legal, regulatory, technological, and financial factors, which would need to be thoroughly assessed and addressed before any decision is made.
In summary, while FedNow is an important advancement in the payment system infrastructure, it should not be conflated with the introduction of a digital currency like a central bank digital currency.
Additionally, Andrew is hyping up his favorite stock for the FedNow program and claims it's only $2.
Unfortunately, Andrew didn't leave enough clues in the presentation to figure out the stock.
However, I believe he's overestimating how much the stock will go up.
He claims the stock will go up to as much as $500.
That would represent gains of over 26,000%, which is very unlikely to happen.
Stock pickers love to use these high numbers to get people to buy their newsletters.
I haven't reviewed this newsletter yet, so I can't recommend it or not.
However, it seems to be under the MarketWise umbrella, which isn't a good thing.
This means upsells and very aggressive marketing.
I will review this newsletter tomorrow, so check back in to see my thoughts.
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