The Fed is finally converting to digital currency with the FedNow Service. We are told it is only for banks… now. But how soon after that will America go totally cashless?

Question to ponder: How will a completely digital currency system effect our "hobby?"

Personally, I shudder to think that this might be coming sooner than we think. Every transaction we make can be (and most likely will be) tracked. Totally against it!!  

To quote Winston Smith in Orwell's 1984: "DOWN WITH BIG BROTHER!!"

What would you do if / when it will become cashless.

Other activities that goes on at the very top of society. They don't  want  to be traced  easily. Some politicians do believe in going after small people olny though  ,and that the  rest   should have immunity  from  law ;  so it's will up to people to set aside their differences and unite to stop these punks ,because  that's  the kind  America some of them dream of.

that a digital currency would then be tracking each and every transaction (that would be a huge invasion of privacy that is likely a violation of numerous laws) but for the sake of the argument, one word: Barter.

 
I would suspect that at some point a collection of items that are generally priced about what the rates are will exist that are traded between providers and their clients.  I either buy the item from the woman or provide the item to the woman who will then know she can sell it to the next customer at the required rate.

So the precedent is quite set already.

are those involved in underground ventures, then a system that tracks every transaction could very well come to pass.  

 
There is already precedent in other areas - we already have much of the Surveillance State in place.  

 
Power, money and control - what politician or greedy corporation could resist pressing for more?

 
"Until they become conscious they will never rebel, and until after they have rebelled they cannot become conscious.”  
     - George Orwell, 1984

I believe it crypo tracks moving through accounts, but the transactions aren't tied to what was sold or purchased.  
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But yeah, when government gets into it, it is Orwell.  

Exactly.  

 
Crypto that most think of is an accounting ledger That is far from the type of tracking what a person spend or pays via some currency. It's not even clear (but I've not looked closely) that the US implementation of some digital currency will use something like blockchain tech:.
"...exploring a CBDC design that would leverage newer technologies, such as blockchain: The Federal
Reserve Bank of Boston is collaborating with the Massachusetts Institute of Technology’s
Digital Currency Initiative to explore the development of alternative platforms"

 
That's from a Jan 2022 research paper from the Federal Reserve BOG,  "Money and Payments: The U.S. Dollar in the Age of Digital Transformation" which I'm sure is easily found via a Google search.

 
With regard to the fear mentioned in the OP, the paper does indicate that privacy concerns would be needed -- largely due to a large base that expects that type of institutional protections as part of our Constitutional system of limited government. It also points out the existing laws and regulations in banking that address criminal and money laundering aspects would still exist.  

 
About 20% of all transactions are cash and about 80% of all in-person transactions are cash.[1] Just how many trillions of transactions will the government really be able to track in an affordable way? Perhaps just as relevant here, should the US looks to a digital currency that is blockchain based like bitcoin, just how large and fast will those chains grow to the point of being some choke point in the system. The Chinese are farther along in their effort here and they are not using blockchain.[2]

So no, I don't think people concerns about some big brother control over your hobby spending or tracking every digital dollar you spend is immanent. Your biggest risk will likely still be your SO, if you have one. That risk might increase for those that didn't already agree to have some separation of financial accounts.  That might depend more on how the digital wallets are structured.

 
[1] http://www.frbsf.org/cash/publications/fed-notes/2022/may/2022-findings-from-the-diary-of-consumer-payment-choice/

[2] http://www.cnbc.com/2021/03/05/chinas-digital-yuan-what-is-it-and-how-does-it-work.html

-- Modified on 4/2/2023 9:57:23 AM

It won't be too long before it goes beyond "Just For The Banks". Meaning us (The People who don't own a bank) will have access to that that was just for business owners. Things are changing extremely quick. Remember back in the days (Before Laptops, Cell Phones & Etc. came out).  

It seems like it's digital only in the sense of existing inter-bank settlement transactions such as ACH or FedWire. The underlying currency seems to still be paper bills and minted coin.

I did an EFT to my crypto provider, they threw a fit because my bank used FedNow instead of ACH.

What you really need to be concerned about is when banks start limiting/requiring paperwork for cash withdrawals.
My banks now won't accept cash deposits unless you can prove your own a legit cash business.

I can see the day coming soon where you will start having to fill out paperwork to explain why you withdraw > $3k/month from ATM's every month.

Cash DEPOSITS: something similar happened to me. The ATM doesn't ask for ID or paperwork so that's how I handle cash deposits now.
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Reason for withdrawing $3k month as cash?  "I am very generous giving money to panhandlers, street buskers, and other people I see walkin' the streets."

or just the I can because we have legal tender laws still on the books.

Recently, close friend is who runs his own business is being audited by IRS.  Thanks to Biden Admin increased funding IRS, they are now targeting a lot of small business and catching people on things they weren’t aware of.   They have access to every single digital transaction going back years.   They dig shit up and ask questions about about anything they want.  Imagine being asked about a bank cash withdrawal or venmo payment made 2 yrs back.  Are any of us that organized to remember and explain.    The convenience of digital payment will make everyone more accountable and Govt can track n trace, collect penalties, and build audit profiles much easier.  Now I totally get it why my landscaper and painters want cash!!   Sucks for honest business owners who follow rules, pay taxes, but get penalized on tax law changes but the guy getting cash gets away with it !     You watch.. more states will legalize prostitution just like Cannabis to collect the taxes they are loosing with cash transactions… so as we are all spoon fed the concept  of  “fair and equitable “ society , one would expect that also applies to the working girls and business to pay up on taxes like the rest  !!!    Then again that cost will be passed along to the customer

So my point stands true.

 
The point being, each transaction is tracked and if an investigator knows my wallet, and knows the wallet of people I pay, he/she can easily trace the transactions and make certain assumptions.

If he sees known escorts wallets all receiving a sum of 300 each from my wallet, there are certain assumptions being made.

Sure, it won't say that I paid to get my dick sucked, but I'm pretty sure jurors won't need an explicit IOU note or anything once those transactions are presented and it's proven who the wallets belong to.

 
How do you think people catch the crypto h@ckers? All transactions are in the open, all you need is someone to point to the right needle in a haystack.

I take deposits and payments electronically all the time and don't mind because I have a corporate structure set up to allow this, but I also appreciate the cash aspect of this business. Clients are vulnerable in certain situations and cannot afford to have large sums of money being traced back. Especially considering that clients spend tens of thousands if not more per year on this hobby; it isn't cheap. You can't hide $80,000 in payments for sex work very easily and a lot of trust is going into these transactions. Some girls run their operation like business but a lot do not and that's how things start to get messy. Having cash reserves is now more important than ever.

doubtful that outright "legalization" of the hobby will occur.  Look how long it is taking to get the Federal laws on weed overturned?  Practically every weed company is almost bankrupt or a penny stock in if they're public.  A friend who was Dir of Finance for one was making $250k, and the other 3 execs were all paid much higher......for a company with less than 2 mill in revenue.....  The stock is trading at one PENNY.  not sustainable....  it only exists to enrich certain players and to get TAX revenue.  If anything, cops will just not enforce the law.  It is happening in many big cities like SF, where unless the theft in a large chain store is OVER $1k, they won't bother.  

Many cops in the DMV are looking to bolt out of the profession as quick as they can.  In a major jurisdiction, they are over 100 cops short and i was told by a friend (ex-cop) that about ~200 are looking to "retire" within the next 1-1/2 years.  This is dangerous in that order in society will continue to deteriorate.  Look what happened the other day in a mall in Dulles Town Center.  A YouTuber kid who does jokes and is known for being pushy didn't back off from someone....and got shot.    

Back to the point (sorry for my rambling)
Cashless society means more  eyes on monetary transactions = more gubment eyes on your business.  So you think BTC is the "way of the future", eh?  Biden and company wanted to track your Venmo/Paypal transactions, remember?
IN this day and age of technology, you really think that the IRS needs more funding?  Remember every time the gubment was shut down, did anything break?   really?  It's OUR money, guys.....  the govt wants more of it, just because.....  

Stupid lib politicians and their policies, such as their attempt to push reparations in CA are making more and more of a polarized society.  They will need more of YOUR money by way of onerous taxes to pay for their stupid shit... which to make it easier to track, can't be "cash".