Fed Chair Jerome Powell Says No to a U.S. CBDC—What’s Next?

By / / Crypto News, Daily News
Fed Chair Jerome Powell Says No to a U.S. CBDC
Table Of Contents
  1. Powell Shuts Down Digital Dollar Talks: No U.S. CBDC Under His Watch
  2. Why Is a U.S. CBDC So Controversial?
  3. Global CBDC Adoption vs. U.S. Hesitation
  4. Powell’s Position and the Future of Digital Money in the U.S.

Powell Shuts Down Digital Dollar Talks: No U.S. CBDC Under His Watch

If you were expecting a U.S. central bank digital currency (CBDC) anytime soon, think again. Fed Chair Jerome Powell has made it crystal clear—there will be no digital dollar while he is in charge.

During a Senate Banking Committee hearing on February 11, Powell was asked directly by Senator Bernie Moreno: “Can I have your commitment that as long as you are the Chairman of the Federal Reserve System, we will never have a central bank digital currency?” Powell’s response? A firm and unequivocal “Yes.”

This stance aligns with recent political developments that have blocked any movement toward a U.S. CBDC. On January 23, 2025, President Donald Trump signed an executive order prohibiting federal agencies from engaging in CBDC-related initiatives. Additionally, the No CBDC Act, introduced in Congress, aims to prevent the Federal Reserve from launching a digital currency without congressional approval.

Why Is a U.S. CBDC So Controversial?

The concept of a government-backed digital dollar has been debated for years. Supporters argue it could enhance transaction efficiency, security, and financial inclusion. However, critics warn that a CBDC could lead to excessive government oversight and control over personal finances.

One major concern? Surveillance. Opponents fear that a digital dollar could give the federal government unprecedented power to monitor financial transactions—similar to China’s digital yuan. Representative Tom Emmer has been a vocal critic, emphasizing that a CBDC could undermine financial privacy and individual freedoms.

Meanwhile, the Federal Reserve has taken a more open approach to cryptocurrencies, allowing banks to offer crypto-related services while firmly rejecting a government-backed digital alternative.

Global CBDC Adoption vs. U.S. Hesitation

While the U.S. is taking a cautious approach, other nations are moving full speed ahead. According to a recent report from the Atlantic Council, 134 countries—representing 98% of the global economy—are actively exploring CBDCs, with 66 already in advanced development stages.

China, India, Brazil, and the European Central Bank are all progressing with their own digital currencies. In contrast, the U.S. is stepping back—for now.

Powell’s Position and the Future of Digital Money in the U.S.

Under Powell’s leadership, the Federal Reserve has studied CBDCs but has taken no formal steps toward implementation. His latest statement is the clearest rejection of a digital dollar yet. As Powell reiterated in past speeches, there will be no digital dollar under his leadership.

With Powell set to remain Fed Chair until May 2026, this stance will likely hold for at least the next two years. Beyond that, the future remains uncertain. However, for now, one thing is clear: the digital dollar is not happening anytime soon.

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