Confirms No Digital Dollar Release During His Term
Federal Reserve (The Fed) Chairman Jerome Powell has firmly stated that the United States will not introduce a digital dollar aka Central Bank Digital Currency (CBDC) during his term. This statement marks a significant change from previous considerations, where the Fed had explored the potential for a digital dollar.
This assertion was conveyed during a Senate Banking Committee hearing on Tuesday (11/02), where he responded to a direct question from Senator Bernie Moreno. Powell answered "Yes" when Moreno asked about his commitment not to issue a CBDC during his term.
CBDC critics, such as Nicholas Anthony of the Cato Institute, praised Powell's commitment, citing potential risks to financial freedom, privacy, and market stability.
Unlike decentralized crypto digital assets such as Bitcoin (BTC), CBDCs will be issued and regulated by the government, which has the potential to raise concerns about oversight. Powell's statement comes as several countries are actively experimenting with their own digital currencies.
This US policy highlights a contrast with global trends, especially under President Trump's administration, which has prohibited the Fed from trying to promote or issue CBDCs. Powell stressed the need for congressional approval to issue a CBDC.
