In a startling revelation, the chairman of the Federal Reserve System, Jerome Powell, testified before the Senate Banking Committee and voiced his concerns about a Central Bank Digital Currency (CBDC) in the United States of America.
During the hearing, Senator Bernie Moreno of Ohio asked Powell directly, “Something that concerns me a lot is the idea that we would even look like China in any way. Can I have your commitment that as long as you are the Chairman of the Federal Reserve System, we will never have a central bank digital currency?” Powell simply said, “No.”
The chairman’s statement aligns completely with the efforts of lawmakers and President Trump to avoid creating CBDCs. On January 23, 2025, Donald Trump signed an executive order prohibiting federal agencies from developing and promoting CBDCs. The Trump administration has been keen on expanding digital assets and cryptocurrency but has cautioned that a CBDC could pose a significant risk to the country’s financial stability.
Trump also signed the No CBDC Act, which bars the Federal Reserve from issuing a CBDC without direct congressional approval. Moreover, Powell kept on repeating that the Federal Reserve is nowhere near making a CBDC any time soon.
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Across the world, the development of central bank digital currencies (CBDCs) is accelerating. According to a report by the Atlantic Council, 134 nations—accounting for 98% of the global economy—are exploring digital currencies. 66 have reached advanced phases, including pilot programs and full-scale deployments. China has broadened its digital yuan trials, while the European Central Bank is advancing its long-term digital euro project. Meanwhile, countries like India, Brazil, and Russia are progressing in their CBDC initiatives.
