If you were expecting a U.S. central bank digital currency (CBDC) anytime soon, think again. Fed Chair Jerome Powell made it clear that there will be no digital dollar under his leadership.
During a Senate Banking Committee hearing on February 11, Senator Bernie Moreno asked Powell directly:
“Can I have your commitment that as long as you are the Chairman of the Federal Reserve System, we will never have a central bank digital currency?”
Powell’s response? A firm and unequivocal “Yes.”
Why Is the U.S. Rejecting a CBDC?
Powell’s stance aligns with recent political moves blocking the possibility of a digital dollar. On January 23, 2025, President Donald Trump signed an executive order barring federal agencies from considering a CBDC. Congress has also introduced the No CBDC Act, preventing the Federal Reserve from launching digital currency without congressional approval.
Supporters of a CBDC argue it could make transactions faster, safer, and more efficient. However, critics see it as a potential government overreach. The biggest concern? Financial surveillance. Sceptics worry that a digital dollar could grant the federal government unprecedented access to Americans’ financial lives—similar to China’s digital yuan. Representative Tom Emmer has been one of the most vocal opponents, warning that a CBDC could erode financial privacy and personal freedoms.
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U.S. Stalls While the World Moves Forward
As the U.S. pumps the brakes on a CBDC, other nations accelerate their digital currency plans. A report from the Atlantic Council reveals that 134 countries—covering 98% of the global economy—are actively developing CBDCs, with 66 already in advanced stages.
China, India, Brazil, and the European Central Bank are all moving ahead, embracing the future of government-backed digital money. Meanwhile, the U.S. remains an outlier—for now.
What’s Next for Digital Money in America?
Powell’s stance represents the Fed’s strongest rejection of a CBDC yet. While the Federal Reserve has studied its potential effects, it has taken no formal steps toward implementation. With Powell’s term running until May 2026, this policy will unlikely change shortly.
However, once Powell steps down, the debate could reignite. The question remains: Will the U.S. continue resisting a digital dollar while the rest of the world moves forward? For now, the answer is a resounding no CBDC under Powell’s watch.
