Jerome Powell: CBDC not on the horizon anytime soon
![Jerome Powell: CBDC not on the horizon anytime soon](https://crypto.news/app/uploads/2023/07/crypto-news-Central-Bank-Digital-Currency-blurry-background-neon-colors-cyberpunk-style-v5.2.jpg)
In testimony before the Senate Banking Committee, Federal Reserve Chair Jerome Powell stated the Federal Reserve is nowhere near making a recommendation or adopting a CBDC.
“Only banks have accounts at the Fed and that’s the way we’re going to keep it,” Powell said, emphasizing that any adoption of a CBDC would be facilitated by the banking system. “People don’t need to worry about a central bank digital currency. Nothing like that is remotely close to happening anytime soon.”
The issue has sparked debate, particularly among Republicans concerned that a CBDC could lead to government surveillance of transactions. This concern comes amidst a global exploration of CBDCs, with 130 countries investigating their potential.
Despite the Federal Reserve’s exploration of CBDCs and a report released last year on their implications, Powell confirmed that the Fed would not issue a CBDC without congressional approval. This was highlighted during a query from Sen. Cynthia Lummis, R-Wyo., which Powell responded to affirmatively.
The discussion around CBDCs has also led to legislative actions, including a bill signed by Florida Governor Ron DeSantis banning federal CBDC use in Florida and a bill advanced by Republicans in the House Financial Services Committee to prohibit the Fed from issuing a CBDC directly to individuals.