A Digital Dollar From the Fed? Not On Jerome Powell’s Watch | Global News Avenue

Fed Chairman Jerome Powell said the central bank would not launch its own digital currency when in charge, closing the possibility that the Fed would soon launch an electronic version.

Powell made a commitment Tuesday, facing doubts on the Senate Banking Committee’s two reports on his monetary policy. Bernie Moreno, a Republican from Ohio, asked Powell to launch its own electronic currency, just like China and several other countries.

“I can promise you that as long as you are the chairman of the Fed system, we will never have the central bank’s digital currency?” Moreno asked.

“Yes,” Powell replied.

The Fed has looked at the idea of ​​launching its own electronic version of the dollar, which can allow people to pay immediately.

Some Fed officials have expressed doubts about the advantages offered by digital currencies, as funds can already be transferred electronically through the banking system.

Cryptocurrency advocates have also criticized the idea because it will reduce the practicality of Bitcoin and other digital currencies as payment methods, while other critics have attracted attention to privacy.

Powell had previously said that the Fed launched its own currency “everywhere”. His latest comments reveal the possibility of launching a CBDC at least until the end of May 2026.