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U.S. Federal Reserve Chair: No rush for Digital Dollar. In a recent Senate hearing, Jerome Powell, the Chair of the U.S. Federal Reserve, sought to allay concerns about a central bank digital currency (CBDC). Contrary to speculation, Powell emphasized that the Fed is “nowhere near recommending – or let alone adopting – a central bank digital currency in any form.” His statement comes as the debate around CBDCs intensifies globally.
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Privacy and Surveillance
Powell underscored the Fed’s commitment to user privacy. Unlike some other countries, where digital currencies allow government surveillance of transactions, Powell assured that the U.S. approach would be different. “People don’t need to worry about it,” he stated. The Fed would not design a system that grants it access to individual user data. Powell drew a sharp contrast with China, where the government can track user activity within its digital currency.
Banking System as a Solution
Should the Fed ever consider a digital dollar, Powell clarified that it would involve the existing banking system. “The last thing we would want with the Federal Reserve would be to have individual accounts for all Americans, or any Americans for that matter,” he asserted. The Fed would rely on banks to manage people’s accounts, ensuring privacy and security.
U.S. Federal Reserve Chair: No rush for Digital Dollar And Congressional Authorization
Powell reiterated that any move toward a digital dollar would require specific authorizations from Congress and the White House. The Fed remains cautious, emphasizing that it is still far from endorsing a CBDC. While other countries explore digital currencies, the U.S. takes a measured approach, prioritizing privacy and public trust.
