Powell guarantees no CBDC as long as he leads the Federal Reserve

Federal Reserve Chair Jerome Powell confirmed that the US volition ne'er person a cardinal slope integer currency (CBDC) portion helium leads the cardinal bank.

Powell made the connection connected Feb. 11 portion speaking astatine the “Semiannual Monetary Policy Report to Congress.” His comments were successful effect to Senator Bernie Moreno’s concerns that the US could “look similar China” and perchance contented a CBDC.

Following Powell’s confirmation, Senator Moreno stated:

“Thank you for that. I deliberation it is highly important, it makes maine precise blessed to perceive you accidental that.”

Notably, President Donald Trump signed an executive order connected Jan. 23 that prohibits national agencies from advancing successful creating a CBDC.

No CBDC plans

Powell has recently made nationalist statements dismissing the likelihood of the Fed issuing a CBDC successful March 2024 during a Senate Banking Committee proceeding connected monetary policy.

He reassured lawmakers that the Federal Reserve is “nowhere near” taking steps toward implementing a CBDC, adding:

“People don’t request to interest astir a cardinal slope integer currency; thing similar that is remotely adjacent to happening anytime soon.”

Additionally, Federal Reserve Governor Christopher Waller recently expressed skepticism astir the necessity of a CBDC successful the US outgo system.

At The Clearing House Annual Conference 2024 connected Nov. 12, Waller questioned whether a CBDC addresses immoderate existent marketplace inefficiencies. He reiterated his 2021 stance, stating helium has yet to perceive a compelling crushed for its adoption.

Waller emphasized the backstage sector’s relation successful driving outgo innovation done competition, arguing that market-driven solutions are much effectual than authorities intervention. 

He besides asserted that the authorities should enactment alternatively than vie successful outgo strategy advancements until a wide request emerges that the backstage assemblage cannot meet.

Both comments reinforced the Fed’s cautious stance connected CBDCs, highlighting its penchant for the backstage assemblage to thrust fiscal innovation portion avoiding nonstop authorities engagement successful idiosyncratic finance.

The station Powell guarantees nary CBDC arsenic agelong arsenic helium leads the Federal Reserve appeared archetypal connected CryptoSlate.