D

uring a Senate Banking Committee hearing on monetary policy on March 7, Jerome Powell, the Chair of the US Federal Reserve, provided significant insights into the regulator's stance on the adoption of a Central Bank Digital Currency (CBDC) in the United States.

Federal Reserve's Stance on CBDC

Powell emphasized that the US is far from deciding on introducing a CBDC, with a strong focus on upholding the privacy of American citizens. His comments come amid global interest in digital currencies issued by central banks and growing concerns about privacy and surveillance.

Privacy Concerns Addressed

Powell assured lawmakers of the Federal Reserve's commitment to privacy, stating that any US digital currency system would not enable government surveillance of individual transactions. This statement aims to address concerns raised by politicians and the public about potential privacy infringements.

Need for Congressional Authorization

The Fed Chair also underscored the necessity of explicit Congressional authorization for moving forward with a CBDC. Powell highlighted that, if implemented, a digital dollar would operate within the banking system to manage accounts, ensuring personal financial activities remain private and not directly accessible by the government.

A Measured Approach to Digital Currency

The Federal Reserve's approach to the potential adoption of a CBDC is marked by caution and a prioritization of American values, particularly privacy. Powell's remarks signify the Fed's commitment to transparency and legality, indicating that any future steps towards a CBDC will be taken with explicit legislative approval and in alignment with the privacy rights of U.S. citizens.

Similar Articles

Show more