Editor's note: FedNow – an instant digital-payments platform from the Federal Reserve – officially launched last summer. And it will be a game changer for the crypto space and U.S. finance alike. So today, we're turning to our colleague Eric Wade, editor of the Crypto Capital investment newsletter. In this essay, most recently published in the Stansberry Digest, he explains the significance behind this major development... and shares what he thinks could come next.

The U.S. has a "sound money" presidential candidate...

Back in July, Robert F. Kennedy Jr. spoke at a fundraising event for his run at the White House.

If elected, Kennedy said he would try to make changes to back the U.S. dollar with "hard currencies." By that, we're talking about things such as gold, silver, platinum, and notably... bitcoin (BTC).

"Fiat currency was invented to fund wars" and leaves the public susceptible to the "hidden tax of inflation," Kennedy said. His plan to back the dollar with real assets would be "to start very, very small, perhaps 1% of issued T-bills would be backed by hard currency."

But Kennedy believes it's critical to do that because...

Backing dollars and U.S. debt obligations with hard assets could help restore strength back to the dollar, rein in inflation, and usher in a new era of American financial stability, peace, and prosperity.

We've heard this line before. So it isn't exactly anything new. But a presidential candidate voicing ideas about how to make the dollar strong again sparked quite a conversation in the mainstream media that week in July...

Some folks immediately began debating the concept of whether it's a good idea or bad idea to support bitcoin. And yes, this is the first overt, pro-crypto, pro-bitcoin U.S. presidential candidate we've seen.

But forget that historic note, if you can...

I heard more than one wise financial analyst say in recent months that even if a president wanted to back the dollar with hard assets, it's not possible. They said it's because the U.S. needs to be able to create dollars on demand.

That's partially true – as things are now. But as I'll explain today, it doesn't always have to be that way.

Our economy, our consumption, our politics all rely on the myth that our currency is "sound." And yet, the practice of endlessly devaluing it continues.

The government creates umpteen trillion dollars seemingly out of thin air. But it doesn't want anyone to stop believing those magic dollars are a strong, sound currency.

It's a paradox. And we ought to try to break it, by backing the U.S. dollar with assets.

I'm on board.

The U.S. already has half a trillion dollars' worth of gold, according to the World Gold Council. The student loans the government owns are worth at least another $1 trillion, if they're ever repaid.

Government-owned land is estimated at $1.5 trillion, including national parks that have been valued at close to $100 billion. The government may have mineral rights on billions of acres of land. And estimates put the value of U.S. oil and gas reserves at more than $55 trillion.

My point is, we could back the dollar with assets, despite how ridiculously we've been increasing our money supply. It sits at nearly $21 trillion today – 35% higher than just before the COVID-19 pandemic. And bitcoin absolutely could be part of the solution.

The plumbing is being laid right now...

After all, the "digital dollar" has arrived.

In a press release in mid-July, the Federal Reserve announced the official launch of its "FedNow" digital-payments system.

I noted that this move was coming in a previous Digest. And more importantly, I said that the Federal Reserve's 24/7 payment-settlement system would change the way banks can operate and transactions can be done. It amounts to digitizing the dollar.

Banks that use FedNow don't need to wait several business days to settle a payment. Money can be sent or made available at any time.

Sound familiar?

It should. It's how cryptocurrencies have worked since bitcoin's creation roughly 15 years ago.

I've explained before how FedNow will revolutionize the way finance works in the U.S. It could be a huge tailwind for all the companies that enable the system to work and can protect folks' digital dollars.

I'm talking about the technologies that crypto believers have championed since the financial crisis of 2008. The Fed has been careful not to speak about a connection between these crypto projects and its brand-new digital-payments platform... but it's there.

As I wrote in a June Digest...

Soon after the launch of FedNow, we expect to see an increase in all online and digital transactions... And the government's digital dollar will bring with it more influence on our lives than most people can imagine.

In time, blockchain and digital wallets will become the only technology capable of protecting everyone's digital dollars while we enjoy instant transactions 24 hours a day, seven days a week.

To start, 35 banks and credit unions were using the system. (It's now more than 100.) And about 20 providers are now supporting the processing of payments for those banks and credit unions.

The U.S. Department of the Treasury is also signed up. And the Fed expects more banks and providers to sign on in coming years.

At least two blockchain networks have already said that they'll "connect" to FedNow.

So with that in mind, Robert F. Kennedy Jr.'s idea of backing the dollar with real assets (including digital ones like bitcoin) is more possible each day.

But here's why this is the start of the digital dollar...

Right now, if someone sends you $20 through Venmo, you'll instantly see it in your account. But the money won't "settle" in the banking system for around three days.

That means you can't use it during that time. And the same thing is true for checks, banking apps, and even direct deposits.

It has been like that since 1972, when the Fed adopted the automated clearing house ("ACH") model. This antiquated system can no longer keep up in today's digital, 24/7 world.

But that's all about to change...

The largest bank in the U.S. – JPMorgan Chase (JPM) – is using FedNow. It's one of the 35 early adopters. And as I said, the Treasury Department is using it as well.

Eventually, the Social Security Administration, pension funds, and up to 10,000 different financial institutions could use FedNow. That means you'll be able to instantly get your Social Security payments, tax refunds, and direct deposits into your bank account.

According to the Wall Street Journal, FedNow will move $73 trillion a year through the economy quicker than ever before. Here's what Fed Chair Jerome Powell said in the announcement of the FedNow launch...

The Federal Reserve built the FedNow service to help make everyday payments over the coming years faster and more convenient. Over time, as more banks choose to use this new tool, the benefits to individuals and businesses will include enabling a person to immediately receive a paycheck, or a company to instantly access funds when an invoice is paid.

Faster money is only the very beginning...

You see, the Fed also plans to create its own cryptocurrency – dubbed "FedCoin." Other governments around the world are also exploring the idea of creating their own digital currencies.

When these so-called "stablecoins" roll out, cryptos and the blockchain technology they run on will officially go mainstream. Everyday Americans will be able to use them to buy goods and move money.

If crypto payments take over just the retail sector, the market for stablecoins alone would be 4,700% larger than it is today.

That's why my research team and I believe FedNow could be the start of the next crypto bull market. And when the dust settles, thousands-of-percent gains are possible.

With or without FedCoin, cryptos that provide the infrastructure for the dollar going digital (thanks to FedNow) will profit the most. And here's the thing...

You can invest in them right now.

Specifically, I'm talking about the projects developing secure crypto wallets to store, send, and receive coins. And I'm talking about the blockchain technology that makes digital payments easy, secure, scalable, and instant.

In the end, the moral of the story is simple...

With FedNow – and possibly FedCoin – reaching millions of Americans, blockchains and digital wallets will become more important than ever.

Blockchains are shared, immutable ledgers. They're like giant Excel spreadsheets that show a complete transaction history.

Everyone can have their own copies of the spreadsheet. It's completely transparent.

Importantly, this technology will power the digital dollar. And it could actually provide some hope for a dollar backed by real assets.

Good investing,

Eric Wade

Editor's note: Eric is our in-house crypto expert. He has closed out 72 positions for triple- and quadruple-digit gains throughout his career and has also delivered huge gains for his subscribers. Now, he's coming forward to issue the most urgent warning of his career...

Three major profit catalysts are converging in the crypto space right now. And it could lead to a massive sector-wide boom. Prepared investors have the chance to build generational wealth from this crucial moment. This morning, at 10 a.m. Eastern time, Eric is sharing what he sees coming in an online presentation. There's still time to reserve your free spot. Click here for all the details.