Jerome Powell confirms US will not issue CBDC under his leadership
Powell’s stance aligns with Republican lawmakers who oppose a digital dollar, a position also echoed in an executive order by former President Trump in January.
Federal Reserve Chair Jerome Powell has confirmed that the US will not launch a central bank digital currency (CBDC) while he remains in charge. Speaking during a Senate Banking Committee meeting on 11 February, Powell assured lawmakers that under his leadership, the Fed would not issue a digital dollar, a position he has reiterated ahead of his term’s end in May 2026.
This statement came amid broader discussions on monetary policy and debanking, with Powell responding to queries from Senators, including concerns over government pressure on financial institutions to cut ties with crypto firms. The Senate hearing, focused on a semiannual monetary policy report, also touched on the Fed’s approach to crypto and digital currency in the US.
The move aligns with broader political trends, as Republican lawmakers have made preventing a digital dollar a key policy issue. In January, former President Trump issued an executive order opposing the establishment of a US digital currency, although its legal standing remains disputed.
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