Powell Declares U.S. Will Not Issue a Central Bank Digital Currency (CBDC)
Federal Reserve Chair Jerome Powell has officially ruled out the introduction of a U.S. central bank digital currency (CBDC) while he remains in charge. Speaking at a Senate Banking Committee hearing, Powell affirmed that the U.S. will not pursue a government-backed digital dollar.
Political and Regulatory Stance
Key Highlights:
- Powell’s stance aligns with Republican lawmakers, who have criticized CBDCs as surveillance tools.
- Donald Trump previously vowed to ban a U.S. CBDC if reelected, calling it a threat to financial freedom.
- Senator Bernie Moreno (R-OH) praised Powell’s position, arguing that the U.S. should avoid following China’s CBDC model.
Global CBDC Developments
While the U.S. steps away from CBDCs, other nations are moving forward:
Key Highlights:
- China has expanded its digital yuan pilot, increasing adoption across retail and business sectors.
- Russia, Turkey, and Japan are experimenting with CBDCs for faster cross-border payments.
- The Czech Central Bank recently began studying a potential Bitcoin reserve, a move that contrasts with Poland’s rejection of BTC reserves.
Powell’s rejection of a CBDC reinforces U.S. policymakers’ skepticism toward digital government currencies, leaving the future of central bank digital assets uncertain.
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