Fed President Jerome Powell tells NO. UU. CBDC

The president of the Federal Reserve, Jerome Powell, has made it clear that the United States will not present a digital currency of the Central Bank (CBDC) during its mandate.

This position marks a notable change of previous considerations in which the Federal Reserve had been exploring the potential of a digital dollar.

No CBDC for the United States, Powell confirms

This statement occurred during a recent Senate Banking Committee audience On Tuesday, when Powell answered a direct question by Senator Bernie Moreno (R-OH).

“Can I have your commitment that as long as it is the president of the Federal Reserve system, which we will never have a digital currency of the Central Bank?” Moreno asked. “Yes,” Powell replied.

CBDC’s previous research aimed at understanding how such currency could improve the efficiency and safety of the current payment system.

CBDC critics, including Nicholas Anthony of the Cato Institute, have praised Powell’s commitment, citing potential risks for financial freedom, privacy and market stability. Unlike decentralized cryptocurrencies such as Bitcoin, a CBDC would be issued by the government and regulated, which could generate concerns about surveillance due to its traceable nature.

This announcement comes at a time when several countries are actively experiencing with their own digital currencies. In particular, the Digital Yuano Digital Pilot began in 2020, with other nations such as Russia, Türkiye and Japan also exploring similar initiatives.

Republicans stop the CBDC

Powell’s firm position highlights a divergence in the United States policy compared to these global trends, especially under the current US administration led by President Trump. Senator Moreno specifically praised Powell’s position, since it meant that the United States would not end “looking to China” in any way.

The debate on the CBDC in the US has seen a great political rejection, especially of the Republican legislators who have requested prohibitions of digital currencies issued by the Government.

Last year, the House of Representatives A bil passedL of Congressman Tom Emmer to prohibit the Federal Reserve from issuing a CBDC. In his recent Crypt Executive OrderPresident Donald Trump also prohibited federal agencies trying to promote or issue a CBDC.

Powell’s clear statement could provide some relief to those interested in the implications of CBDC on personal freedoms and privacy.