Federal Reserve Chair Says The US Digital Dollar Is «Nowhere Near» Being Ready for Use

In a recent Senate hearing, Chairman of the US Federal Reserve, Jerome Powell, emphasized that the United States is «nowhere near» the development of a central bank digital currency (CBDC), according to Finextra. Powell highlighted the Fed’s lack of interest in a system that would compromise user data, stating that the US government would not endorse a service allowing for the monitoring of citizens’ transactions.

«We’re nowhere near recommending – or let alone adopting – a central bank digital currency in any form,» Powell stated. He reassured the public, saying, «people don’t need to worry about it.»

Powell outlined that if a digital dollar were to be implemented in the future, it would be done through the banking system rather than directly by the Federal Reserve. He emphasized that the central bank would require authorization from both the White House and Congress to proceed with a US digital currency.

Despite the Fed’s cautious approach, there has been significant pushback from Republican politicians. Figures like Donald Trump have voiced strong opposition to integrating a digital currency, with Senator Ted Cruz even authoring an act in February to block the Federal Reserve from supporting CBDC. Cruz argued that a digital currency could be used to track citizens, further fueling the debate surrounding the future of digital currency in the US.