Key Takeaways:
- Fed Chair Jerome Powell stated the U.S. will not introduce a central bank digital currency (CBDC) while he is in office, with his term running until May 2026.
- Powell acknowledged concerns over crypto firms being debanked, saying the Fed would take a “fresh look” at these policies.
- The issue of a digital dollar remains politically divisive, with an anti-CBDC bill passing the House but awaiting Senate action.
Federal Reserve Chair Jerome Powell reassured lawmakers that a U.S. central bank digital currency (CBDC) will not be introduced during his tenure, which lasts until May 2026.
Speaking at a Senate Banking Committee hearing on February 11, Powell made his firmest statement yet against a digital dollar in response to questions from Senator Bernie Moreno.
JUST IN: 🇺🇸 Fed Chair Jerome Powell commits to never creating a central bank digital currency. pic.twitter.com/QgpQ8HS7zK
— Simply Bitcoin (@SimplyBitcoinTV) February 11, 2025
Previously, Powell had only suggested that the U.S. was “nowhere near” adopting a CBDC, but his latest remarks reflect a stronger stance.
The hearing, primarily focused on the Federal Reserve’s monetary policy report, also covered concerns over banks restricting services to crypto firms.
Powell stated that the Fed would take a “fresh look” at debanking policies following questions from Senators Tim Scott and Cynthia Lummis.
The issue of a digital dollar remains highly divisive in Congress.
Many Republican lawmakers strongly oppose a CBDC, with former President Donald Trump issuing an executive order banning its creation in January 2024.
However, legal experts have questioned the order’s enforceability.
Additionally, an anti-CBDC bill from Representative Tom Emmer passed the House in May 2024 and now awaits action in the Senate Banking Committee.
It remains uncertain whether the Senate will vote on the bill during the 119th Congress.
About The Author
Adam Morris, the co-founder of Crypto Head and a respected crypto expert, offers insightful commentary and analysis on cryptocurrency, NFTs, and the evolving digital landscape.
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