Jerome Powell Clarifies: US Far From Introducing a Central Bank Digital Currency

Federal Reserve Chair Jerome Powell stated before the Senate Committee on Banking, Housing, and Urban Affairs that the United States is far from adopting or even recommending the introduction of a central bank digital currency (CBDC), emphasizing a significant distance from such a possibility. He assured that any potential CBDC would not be designed for surveillance of users’ transactions, countering concerns by highlighting the contrast with China’s digital yuan and asserting that the Fed would maintain its approach of only allowing banks to have accounts with the Fed. Moreover, Powell reaffirmed the necessity for Congressional authorization before the Federal Reserve could proceed with launching a CBDC, amidst an international backdrop where several countries are exploring, developing, or have already launched their own CBDC initiatives.