Fed Chairman rules out idea of ​​issuing digital dollar

In light of recent comments from Federal Reserve Chairman Jerome Powell and the political debate surrounding a possible U.S. central bank digital currency (CBDC), the concept of a digital dollar finds itself on uncertain ground.

Amid leaked comments and public statements, Powell made clear that the Federal Reserve is not currently on track to introduce a US central bank digital currency.

Fed Chairman Says There's No Need to Worry About the Digital Dollar

In his final speech, Powell set a tone of cautious deliberation rather than immediate action.

“There is no need to worry about central bank digital currency,” Powell reassured.

He explained Powell further outlined the Fed's position:

“We are in no way about to recommend or adopt a central bank digital currency.”

This statement is a direct response to discussions and concerns surrounding privacy, surveillance, and the overall impact of the digital dollar on the financial system. By making comparisons with other countries, such as: Chinese digital yuan, Highlighting the importance of privacy, Powell stressed the importance of privacy.

“The Fed will not allow the central bank to have access to individuals’ transactions with their money.”

Despite these assurances, discussions within policy circles suggest that the idea of ​​a central bank digital currency is still under consideration.

Trump expresses opposition to central bank digital currencies

Leaked comments from a meeting between Powell and senior Democrats revealed that discussions over a central bank digital currency inspired by bitcoin and cryptocurrencies are still ongoing. Powell indicated that congressional approval would be necessary for such an initiative.

Powell was quoted as saying: “If we want to have a US central bank digital currency, Congress must authorize it.”

The debate over the US digital dollar has occupied policymakers and the political arena. Former US President Donald Trump expressed his strong opposition.

Read more: India approves issuance of digital rupee with help from 4 banks

Commenting on his possible return to the White House, Trump promised to obstruct the creation of the digital dollar. Stressing that this is a path to “government tyranny.”

This position has resonated with his popular base, as evidenced by recent opinion polls that show him ahead of incumbent President Joe Biden in a hypothetical 2024 election showdown.

As discussions continue and political figures maintain their positions, the future of the US digital dollar remains shrouded in uncertainty. While Powell calls for a cautious, measured approach and political leaders draw lines in the sand, the journey to a potential digital currency in the United States is fraught with both technological and legislative challenges.