- Federal Reserve Chair Jerome Powell reassures the U.S. is far from adopting a CBDC.
- Emphasizes the commitment to avoiding surveillance-oriented digital currencies.
- Highlights global CBDC activities, including Hong Kong’s push and BRICS’ blockchain-based payments system.
- Philippines aims to complete its wholesale CBDC by year-end.
Powell’s Reassurance
Federal Reserve Chair Jerome Powell has unequivocally stated that the United States is currently distant from any consideration or adoption of a central bank digital currency (CBDC). During a hearing before the Senate Committee on Banking, Housing, and Urban Affairs on March 7, Powell emphasized the Federal Reserve’s firm stance against surveillance-oriented CBDCs, citing concerns about potential privacy infringements. Powell assured that the U.S. central bank is not even in the preliminary stages of recommending or adopting a digital currency.
Global CBDC Landscape
Powell’s comments coincide with significant developments in the global CBDC landscape. Hong Kong’s central bank has recently launched a renewed effort toward a wholesale CBDC, aligning with the broader trend of nations exploring digital currencies. Additionally, the geopolitical bloc BRICS has reportedly initiated work on a blockchain-based payments system, showcasing the increasing interest and activity in the intersection of technology and finance. Meanwhile, a Philippines central bank official announced plans to complete the country’s wholesale CBDC by the end of the year, contributing to the accelerating pace of CBDC developments worldwide.