Federal Reserve Chairman Makes America’s Position on Digital Dollars Clear
Key Takeaways
- Jerome Powell argues that the United States is far from adopting a CBDC, emphasizing privacy and not caring about surveillance.
- Powell stressed the need for congressional approval for a U.S. CBDC, emphasizing a cautious approach to digital currency development.
- Global CBDC development continues as various countries explore or implement digital currencies.
Federal Reserve Chairman Jerome Powell said, The United States’ position on the development of central bank digital currencies (CBDCs) has been clarified. Highlights privacy issues and the country’s current position on the matter.
Powell argues: that much The United States is “not going anywhere” in introducing CBDC I’m not interested in systems that allow user surveillance.
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The statement was made at a hearing of the Senate Banking, Housing and Urban Affairs Committee on March 7.
Chairman Powell reaffirmed the Federal Reserve’s position. Congressional approval is required before any potential introduction of a CBDC in the United States. Addresses concerns raised by Senator Cynthia Lummis about the Federal Reserve’s authority to create CBDCs without legislative approval.
Powell also emphasized: The Federal Reserve’s Commitment to Privacy; Citing concerns about potential surveillance reminiscent of China’s digital yuan, he said:
That is not something we advocate, do, or propose here in the United States.
His remarks were that if a U.S. CBDC were developed, Runs through the banking system, There are no personal accounts at the Federal Reserve for Americans.
This statement is Against the backdrop of significant global CBDC activity, 11 countries have launched CBDCs, 21 are conducting pilot trials, and 33 are in the development stage.
Meanwhile, the United States remains cautious and prudent to ensure that future developments are consistent with the country’s values and legal framework.
International activity in the CBDC sector has also been highlighted by the BRICS bloc’s efforts to develop payment systems based on blockchain and digital technologies to improve global financial independence and efficiency.
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