Federal Reserve Chairman Jerome Powell has provided an update to Congress members regarding the Fed’s central bank digital currency ( CBDC) work. “If we’re going to have a CBDC, Congress needs to authorize it,” he stressed. Moreover, the Fed chair reportedly said that a framework for stablecoins is needed.
Fed Chair Powell Briefs Lawmakers on US Central Bank Digital Currency Progress
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Fed Chair Powell on US CBDC and Stablecoin Legislation
Federal Reserve Chairman Jerome Powell held a closed-door meeting with Democrats on the House Financial Services Committee on Tuesday where he provided an update on the Fed’s central bank digital currency ( CBDC) progress, Politico reported. Powell also reportedly discussed stablecoin legislation.
Powell was quoted by a source in the meeting as saying:
If we’re going to have a CBDC, Congress needs to authorize it … We aren’t advocates, but we haven’t made a decision to recommend a CBDC to Congress.
While the Federal Reserve has been researching whether to issue a digital dollar, the Vice Chair for Supervision of the Board of Governors of the Federal Reserve System, Michael Barr, said in September last year: “Investigation and research are very different from decision making about next steps in terms of payments system development, and we are a long way from that.”
In March last year, Powell explained that the Fed has engaged with the public on an ongoing basis regarding a potential digital dollar. “We are not at the stage of making any real decisions. What we are doing is experimenting in kind of early-stage experimentation,” he detailed at the time.
Meanwhile, many lawmakers have opposed the creation of a digital dollar. Earlier this year, Congressman Tom Emmer said 75 U.S. lawmakers have co-sponsored his CBDC Anti-Surveillance State Act. In addition, presidential candidate and former President Donald Trump has promised to ensure that the Fed does not launch a CBDC if he is elected president.
The Fed chairman also discussed stablecoins during the closed-door meeting with members of the House Financial Services Committee, the publication noted. According to a person in the room, Powell said:
We need a framework for stablecoins.
Moreover, Powell expressed that he is “very supportive” of establishing stablecoin legislation, adding that he is “glad that we are close.”
What do you think about the statements by Federal Reserve Chairman Jerome Powell regarding a U.S CBDC and stablecoin legislation? Let us know in the comments section below.
