By Nermeen Nabil Khear 
Federal Reserve Chair Jerome Powell confirmed that the US will never have a central bank digital currency (CBDC) while he leads the central bank.
Powell made the statement on Feb. 11 while speaking at the “Semiannual Monetary Policy Report to Congress.” His comments were in response to Senator Bernie Moreno’s concerns that the US could “look like China” and potentially issue a CBDC.
Following Powell’s confirmation, Senator Moreno stated:
“Thank you for that. I think it is extremely important, it makes me very happy to hear you say that.”
Notably, President Donald Trump signed an executive order on Jan. 23 that prohibits federal agencies from advancing in creating a CBDC.
No CBDC plans
Powell has recently made public statements dismissing the likelihood of the Fed issuing a CBDC in March 2024 during a Senate Banking Committee hearing on monetary policy.
He reassured lawmakers that the Federal Reserve is “nowhere near” taking steps toward implementing a CBDC, adding:
“People don’t need to worry about a central bank digital currency; nothing like that is remotely close to happening anytime soon.”
Additionally, Federal Reserve Governor Christopher Waller recently expressed skepticism about the necessity of a CBDC in the US payment system.
At The Clearing House Annual Conference 2024 on Nov. 12, Waller questioned whether a CBDC addresses any real market inefficiencies. He reiterated his 2021 stance, stating he has yet to hear a compelling reason for its adoption.
Waller emphasized the private sector’s role in driving payment innovation through competition, arguing that market-driven solutions are more effective than government intervention.
He also asserted that the government should support rather than compete in payment system advancements until a clear need emerges that the private sector cannot meet.
Both comments reinforced the Fed’s cautious stance on CBDCs, highlighting its preference for the private sector to drive financial innovation while avoiding direct government involvement in personal finance.
The post Powell guarantees no CBDC as long as he leads the Federal Reserve appeared first on CryptoSlate.
This articles is written by : Nermeen Nabil Khear Abdelmalak
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