Jerome Powell Assures Senate: No Digital Dollar Under His Leadership
Federal Reserve Chair Jerome Powell has guaranteed lawmakers that a U.S. central bank digital currency (CBDC) will not be issued during his tenure.
During a Feb. 11 Senate Banking Committee hearing, Powell firmly stated that the Federal Reserve would not introduce a digital dollar while he remains in office. Responding to questions from Ohio Senator Bernie Moreno, Powell reaffirmed his stance, emphasizing that a CBDC would not be considered under his leadership. His term is set to end in May 2026.
Powell Addresses CBDC Concerns in Senate Hearing
The Senate hearing, centered around the Federal Reserve’s semiannual monetary policy report, also covered concerns regarding debanking policies. Powell acknowledged that the Fed would take a “fresh look” at these policies following inquiries from Senators Tim Scott and Cynthia Lummis. The discussion stemmed from allegations that government agencies pressured financial institutions into cutting ties with crypto-related businesses.
In contrast to previous statements, Powell’s latest remarks marked his strongest commitment yet against issuing a CBDC. During a March 2024 Senate hearing, he had previously stated that the U.S. was “nowhere near recommending, let alone adopting, a central bank digital currency in any form.”
Republican Lawmakers Push Anti-CBDC Agenda
Preventing the launch of a U.S. dollar-pegged CBDC has become a key policy stance for Republican leaders in Congress and the White House.
President Donald Trump reinforced this position by signing an executive order on Jan. 23, prohibiting the establishment, issuance, circulation, and use of a digital dollar. However, legal experts have debated whether the order holds enforceable authority.
Additionally, Representative Tom Emmer introduced an anti-CBDC bill, which passed the House of Representatives in May 2024 along largely partisan lines. The legislation is now with the Senate Banking Committee, though it remains uncertain whether the 119th Congress will bring it to a vote.
As the debate over a U.S. digital dollar continues, Powell’s assurance signals that—at least under his leadership—the Federal Reserve has no plans to pursue a CBDC.
