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Fed's 'Digital Dollar' Idea Has Frightening Implications For Privacy And Freedom - What's AheadNo. The FedNow Service is not related to a digital currency. The FedNow Service is a payment service the Federal Reserve is making available for. It uses Fedcoin � a conceptual form of Central Bank-issued Digital Currency � to describe the challenges of establishing a stable cryptocurrency, consider. While the world was busy watching the collapse of crypto exchange FTX, the US Federal Reserve system made an important move.