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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.

Overview

  • 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.