Federal Reserve Chairman Jerome Powell Says No to US CBDC

Federal Reserve Chairman Jerome Powell has made it clear that the United States will not introduce the Central Bank Digital Currency (CBDC) during his tenure. This marks a significant change from previous considerations as the Federal Reserve explores the potential of a digital dollar. No CBDC for the US, Powell confirms This statement was made during a recent Senate Banking Committee hearing on Tuesday as Powell directly answered a question from Senator Bernie Moreno R-OH. “I can commit to that as long as you are the chairman of the Federal Reserve system, we will never have digital currency of the central bank, right?” Moreno asked. “Got it,” Powell replied. The Fed's previous research on CBDC aims to understand how this type of currency can improve the efficiency and security of the current payment system. Critics of CBDC, including Nicholas Anthony of the Cato Institute, have praised Powell's commitment, pointing out the potential risks to financial freedom, privacy, and market stability. Unlike decentralized cryptocurrencies like Bitcoin, CBDCs will be issued and managed by the government, raising concerns about its inherently trackable nature. This announcement comes at a time when some countries are actively testing their own digital currencies. Notably, China's digital yuan trial program started in 2020, with other countries such as Russia, Turkey, and Japan also exploring similar initiatives. The Republican Party stops CBDC Powell's tough stance highlights the difference in U.S. policy compared to these global trends, especially under the current U.S. presidency led by President Trump. Senator Moreno particularly praises Powell's stance as it means the U.S. will not end up "like China" in any way. The debate surrounding CBDC in the United States has witnessed significant political resistance, especially from Republican lawmakers who are calling for a ban on government-issued digital currencies Last year, the House passed Congressman Tom Emmer's bill banning the Federal Reserve from issuing CBDC. In his recent executive order on cryptocurrencies, President Donald Trump also prohibited federal agencies from promoting or issuing CBDC. Powell's clear statement may help those concerned about the impact of CBDC on individual freedom and privacy feel relieved. DYOR! (Write&Earn $BTC {spot})BTCUSDT#Write2Earn #