Key Takeaways
- Jerome Powell confirmed no CBDC will be issued under his leadership.
- Powell reiterated that the Federal Reserve is far from implementing a CBDC.
- Fed Governor Christopher Waller also dismissed the need for a CBDC.
Speaking at the “Semiannual Monetary Policy Report to Congress” on Feb. 11, Powell responded to Senator Bernie Moreno’s concerns that a CBDC could push the U.S. toward a system resembling China’s.
Powell firmly stated that no such initiative would move forward under his leadership.
Following Powell’s remarks, Senator Moreno responded:
Thank you for that. I think it is extremely important, it makes me very happy to hear you say that.
Federal Reserve position
Powell’s comments align with previous statements he made in March 2024, when he told the Senate Banking Committee that the Federal Reserve is “nowhere near” pursuing a CBDC.
He reassured lawmakers that concerns over such a system are unfounded, saying:
People don’t need to worry about a central bank digital currency; nothing like that is remotely close to happening anytime soon.
Private sector innovation
Federal Reserve Governor Christopher Waller has also questioned the necessity of a CBDC.
Speaking at The Clearing House Annual Conference in November 2024, Waller reiterated his skepticism, stating he has yet to hear a compelling case for its adoption.
Waller emphasized that the private sector should lead payment innovation, arguing that market-driven solutions are more effective than government-led initiatives.
He maintained that the government should not intervene unless a critical market gap arises that private companies cannot address.
