The Federal Reserve chairman takes a firm stance on the digital dollar during a Senate hearing.
Federal Reserve Chairman Jerome Powell has categorically ruled out the introduction of a central bank digital currency (CBDC) during his tenure.
The statement came on February 11 during a Senate Banking Committee hearing, in response to a direct question from Senator Bernie Moreno. When asked to commit to never introducing a CBDC under his leadership, Powell replied with a firm “Yes.”
This stance was welcomed by several industry experts, including Nicholas Anthony of the Cato Institute, who commented:
“The Fed has kept the legal status of a central bank digital currency in a gray area for too long. Powell’s commitment represents a positive shift, considering the risks CBDCs pose to financial freedom, privacy, and markets.”
The introduction of CBDCs has raised concerns among critics, who see central bank digital currencies as a potential tool for surveillance.
While the United States appears to be moving away from the idea of a digital dollar, other countries such as Russia, Iran, and Israel are already experimenting with their own CBDCs. In 2020, China launched pilot programs for its digital yuan.
