Jerome Powell told lawmakers that the Federal Reserve has no plans to launch a central bank digital currency (CBDC) without explicit authorization from Congress.
Federal Reserve Chairman Jerome Powell said at a Senate Banking Committee hearing on monetary policy on March 7 that regulators are still far from adopting or even recommending a central bank digital currency (CBDC). .
Powell's testimony at the meeting aimed to allay concerns about privacy issues, emphasizing that the Fed would not be involved in creating a system that would allow the government to spy on the transactions of U.S. citizens.
Maintain privacy
When facing the Senate, Powell emphasized the Fed's current stance on the concept of a digital dollar, emphasizing that the United States is far from advancing any form of CBDC. The announcement comes amid growing global discussion about the potential and impact of central bank-issued digital currencies.
Contrary to some international practices that allow governments to track digital currency transactions, Powell assured lawmakers that the Fed would prioritize privacy.
He said:
"If that was a government account, the government would see all of your transactions, and we would never accept or propose such a scheme in the United States."
The concept of a CBDC in the United States has sparked debate among politicians and the public, with concerns often focusing on privacy and government surveillance.
Republicans, including presidential candidate Donald Trump, have publicly criticized the possibility that a federal government-run digital currency could infringe on personal privacy.
Powell's speech directly responded to these concerns, making clear his stance against any form of system that would subject Americans to surveillance.
congressional authorization
Powell further explained the operational details, noting that if the Fed actively promotes CBDC, it will integrate the banking system to manage accounts, thereby preventing the government from directly accessing personal transaction data.
This approach is designed to preserve the integrity of individual financial activities by ensuring that these activities remain within the purview of private banking institutions rather than under government surveillance.
Powell also emphasized the importance of legislative approval of any CBDC initiative, as the Fed is committed to legal and transparent governance. Responding to Senator Cynthia Lummis, he confirmed that regulators would seek clear authorization from Congress and the executive branch before moving forward with a digital dollar.
The Fed's cautious and cautious approach to the idea of ??a digital dollar reflects broader considerations about the impact such a currency could have on privacy, monetary policy and the banking system.
The Federal Reserve's cautious and privacy-focused stance on the potential implementation of a U.S. CBDC marks a key moment in the global discussion about digital currencies. As Powell made clear, any future developments will be strictly consistent with U.S. privacy and liberal values, ensuring that the financial sovereignty of U.S. citizens is not compromised in the digital age. #美聯(lián)儲(chǔ) #央行數(shù)字貨幣
