Jerome Powell Shuts Down US Digital Dollar Plans—No CBDC Under His Watch

Speaking before the Senate Banking Committee on February 11, he stated that the Fed would not move forward with such a project under his leadership, which will run until May 2026.

Powell’s stance on a digital dollar has shifted. In March 2024, during a different Senate hearing, he said the US was “nowhere near recommending or let alone adopting a central bank digital currency in any form”.

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Powell’s statement came in response to questions from Ohio Senator Bernie Moreno, whose 2024 election campaign has reportedly been backed by crypto-focused political groups.

While Powell has previously expressed skepticism about a digital dollar, this was one of his strongest public assurances that it would not happen during his tenure.

The Senate hearing was part of the Fed’s semiannual monetary policy update to Congress. During the session, Powell also addressed concerns raised by Senators Tim Scott and Cynthia Lummis about financial institutions cutting off services to crypto firms.

He stated that the Fed would “take a fresh look” at policies related to these decisions. This follows a separate Senate discussion on February 5, where lawmakers examined whether government agencies pressured banks to stop working with crypto businesses.

Meanwhile, US Treasury Secretary Scott Bessent recently spoke against the need for a CBDC. What did he say? Read the full story.