WASHINGTON—With Congress and state legislatures either considering or passing laws related to the creation of a central bank digital currency, Federal Reserve Chairman Jerome Powell told the Senate the U.S. is “nowhere near” CBDC development.
Powell said that the Fed is not close to implementing a digital dollar, as it has no interest in a system that would require user data, saying the U.S. government would not back a service where the government would be able to see and monitor citizens’ transactions, Finextra reported.
"We're nowhere near recommending – or let alone adopting – a central bank digital currency in any form," Powell stated, adding, “People don't need to worry about it."
Powell further stated that if the Fed were to implement a digital dollar in the future it would be through the banking system and not the Federal Reserve. Powell stated the central bank will need authorization from the White House and Congress to move forward with a U.S. digital currency.
‘Used to Track’ People
“While CBDC research is currently preliminary, there has been an outcry from Republican politicians, such as Donald Trump, opposing the integration of a digital currency,” Finextra stated. “Sen. Ted Cruz (R-TX), who authored an act to block the Federal Reserve from supporting CBDC in February, stated that the digital currency would be used to track citizens.”
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