Unveiling the Stance: Powell Clarifies U.S. Position on CBDC Amid Global Developments

    Federal Reserve Chair Powell dispels rumors of an imminent U.S. CBDC, emphasizing privacy concerns. Global developments in Hong Kong, BRICS, and the Philippines contribute to the evolving landscape of central bank digital currencies.

    • 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.

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