Federal Reserve Chairman Jerome Powell says no for us cbdc

The President of the Federal Reserve, Jerome Powell, explained that the United States will not provide a central bank’s digital currency (CBDC) during his term.

This position represents a remarkable shift from previous considerations, as the federal reserve was exploring the possibilities of the digital dollar.

There is no CBDC for the United States, and Powell emphasizes

This announcement came during a rear banking committee hearing On Tuesday, Powell answered a direct question from Senator Berno Moreno.

“Can I commit to the fact that as long as you are the head of the Federal Reserve System, we will not have a central bank’s digital currency?” Moreno asked. “Yes,” Powell replied.

Previous research conducted by the CBDCS Federal Reserve aims to understand how this currency improving the efficiency and safety of the current payment system.

CBDCS critics, including Nicholas Anthony, praised the Kato Institute, Powell’s commitment, referring to the potential risks of financial freedom, privacy and market stability. Unlike decentralized cryptocurrencies such as Bitcoin, the Convention on Biological Diversity will be issued and the regulation of the government, which may lead to concerns about monitoring due to its traceable nature.

This announcement comes at a time when many countries are actively experimenting with their digital currencies. It is worth noting that the Yuan Digital Pilot in China started in 2020, with other countries such as Russia, Turkey and Japan also exploring similar initiatives.

Republicans stood cbdcs

Powell Powell highlights the difference in US policy compared to these global trends, especially under the current US administration led by President Trump. Senator Moreno specifically praised Powell’s position because it means that the United States will not end “look like China” in any way.

The discussion on CBDCS in the United States witnessed a great political recovery, especially from the Republican lawmakers who called for the prohibition of the government currencies issued by the government.

Last year, the House of Representatives He passed between BilFor a member of Congress Tom Amir to ban the Federal Reserve Council from the CBDC version. In his speech Executive encryption orderPresident Donald Trump also prevented federal agencies from trying to strengthen or release CBDC.

Powell’s Powell statement may provide some relief to those concerned with the repercussions of CBDCS on personal freedoms and privacy.