Federal Reserve Chair Jerome Powell Rules Out CBDC Launch During His Tenure
Federal Reserve Chair Jerome Powell has definitively stated that the Fed will not introduce a Central Bank Digital Currency (CBDC) while he holds office.
In response to a query from Ohio Senator Bernie Moreno during a Senate Banking Committee hearing, Powell affirmed, "Yes," when asked if the Fed would refrain from creating a CBDC during his chairmanship, which expires in May 2026.
Powell's declaration effectively dismisses the possibility of a federally issued digital dollar being developed during his tenure. The Fed has previously explored the concept of a CBDC, but Powell's comments indicate that it is no longer under consideration.
Proponents of CBDCs contend that they would facilitate faster and more accessible payments. However, concerns about privacy have been raised by critics.
The potential introduction of a CBDC has also faced opposition from cryptocurrency advocates, who argue that it would diminish the value of Bitcoin and other digital currencies.