Fed Chair Powell: U.S. Far from Adopting Digital Currency, Requires Congressional Approval

In Senate testimony, Powell emphasizes CBDC would operate through banks, not individual accounts, to prevent government surveillance.

Federal Reserve Chair Jerome Powell reassures lawmakers that the U.S. is 'nowhere near' adopting a central bank digital currency (CBDC), emphasizing the process would involve congressional approval.
Powell dismisses concerns over government surveillance through CBDCs, stating any potential digital currency would operate through the banking system, not individual accounts.
Despite global interest in CBDCs, with 130 countries exploring the concept, Powell asserts the U.S. Federal Reserve has not made any recommendations on adopting a CBDC.
Republican lawmakers express concerns over privacy and surveillance with CBDCs, but Powell's testimony aims to calm fears by highlighting the need for congressional authorization.
Powell also addresses regulatory matters, indicating a deliberate approach to the 'Basel III endgame' proposal, focusing on getting the rule right rather than rushing its completion.