FED Powell: Digital dollar will not be launched during my tenure, the Republican government is completely opposed to CBDC

Federal Reserve Chairman Jerome Powell publicly assured members of Congress during his testimony to the Senate Banking Committee on 2/11 that he will absolutely not issue digital dollars (CBDC) during his tenure as FED chairman. His term is expected to end in May 2026.

This statement represents a shift from his previously conservative stance. As early as March 2024, during a hearing at the Senate Banking Committee, which was then dominated by the Democratic Party, Powell only said that "the United States is far from launching a CBDC," but did not make a clear commitment. This time, he directly publicly vetoed the possibility of introducing a digital dollar CBDC during his tenure.

FED will re-examine the policy of 'debankization'

The theme of this hearing is the semi-annual monetary policy report submitted by the FED to Congress. In addition to discussing economic policies, senators are also concerned about the government's regulation of financial institutions.

Republican Senators Tim Scott and Cynthia Lummis questioned Powell at the hearing, asking for clarification on whether he had pressured banks and calling for a halt to the de-banking of crypto companies. In response, Powell said the FED will review the relevant policies, which could affect US financial institutions' attitudes towards the crypto industry.

The Republican Party is making every effort to block the digital dollar, and Trump has already signed an executive order

Currently, the US government is controlled by the Republican Party led by Donald Trump (, who is in charge of the White House, Senate, and House of Representatives, and the party has regarded opposition to CBDC as one of its important policy goals.

On 1/23, Trump signed an executive order explicitly prohibiting the establishment, issuance, circulation, and use of digital dollars. However, many legal experts questioned whether Trump has the direct power to ban CBDC and believe that this still requires formal legislation passed by Congress.

The 'Anti-CBDC Act' proposed by Tom Emmer, the majority whip of the House of Representatives, was passed in the House of Representatives in May 2024 and referred to the Senate Banking Committee for review. However, it is still unclear whether the Senate will vote on it in this session of Congress.

)Prohibition of CBDC! Trump's new executive order promotes blockchain, establishes stablecoin legislation, and consolidates the dominance of the US dollar(

The prospects of CBDC are uncertain, and the market is watching the government's follow-up actions

Powell's statement, Trump's executive order, and Republican control of Congress have made the future of digital dollar CBDC) more uncertain. Some supporters believe that CBDC can improve financial efficiency and enhance regulatory transparency, while opponents are concerned that it may infringe on privacy and could be misused by the government to monitor citizen transactions. Whether CBDC will have a chance to return to the discussion agenda in the future will depend on the attitude of Congress and the next government.

(Powell is not in a hurry to cut interest rates, Bitcoin falls along with tech stocks, ETF news boosts ADA by 10%)

This article FED Powell: digital dollar will not be issued during my tenure, the Republican government is completely opposed to CBDC first appeared in Chain News ABMedia.