Fed Chair Jerome Powell Says No to U.S. CBDC—What’s Next?

Fed Chair Jerome Powell Confirms: No U.S. CBDC While He’s in Charge

Fed Chair Jerome Powell Shuts Down Digital Dollar Talks: No U.S. CBDC While He’s in Charge

If you were looking for a U.S. CBDC coming anytime soon, think again; Fed Chair Jerome Powell made it absolutely clear that there will be no digital dollar while he is in charge.

During a Senate Banking Committee on February 11, Fed Chair Powell faced such a question directly: "Can I have your commitment that as long as you are the Chairman of the Federal Reserve System that we will never have a central bank digital currency?" asked by Senator Bernie Moreno. Powell’s answer? A firm and simple “Yes.”

This stance isn’t coming out of nowhere. It aligns with recent political moves that have effectively blocked the possibility of a digital dollar. On January 23, 2025, President Donald Trump signed an executive order under which federal agencies are forbidden even to engage in establishing a CBDC. The No CBDC Act introduced by Congress aims to prevent the Federal Reserve from creating digital currency unless Congress gives its permission.

Why Is the U.S. CBDC So Controversial?

The idea of a government-backed digital dollar has existed for numerous years. The system finds support because it enables faster and safer transactions with enhanced efficiency.  But critics warn that it might allow too much government interference and control over people's money.

One of the biggest concerns? Surveillance. Critics worry that a CBDC could conceivably enable the federal government to monitor and track transactions, as China’s digital yuan does, which is precisely why Representative Tom Emmer has been opposed to it. He believes that a digital dollar could open the doors for unprecedented government insight into every aspect of Americans’ financial lives.  

Meanwhile, a Fed shift allows banks to serve crypto, signaling a more open stance on digital assets while rejecting government-backed alternatives.

Global Adoption vs. U.S. Hesitation

While Powell and other U.S. policymakers are hitting the brakes, other nations are accelerating their digital currency plans. A recent report from the Atlantic Council found that 134 countries—representing 98% of the global economy—are actively exploring CBDCs, with 66 already in advanced development stages.

China, India, Brazil, and the European Central Bank are all moving forward with their own versions. The U.S., however, is going in the opposite direction—for now.

Powell’s Position and the Future of Digital Money in the U.S.

Powell introduced this new position regarding the Federal Reserve's previous CBD policy stance. Under Powell’s leadership, the Federal Reserve has studied the potential effects of a CBDC but has not taken formal steps toward its implementation. His latest statement is his clearest rejection of a digital dollar yet. As stated earlier in  Jerome Powell speeches there will be no digital dollar under his leadership of the Federal Reserve.

The U.S. will continue following this path through at least two more years because Powell remains in his position until May 2026. His broader economic policies, including Jerome Powell’s Fed rate cut, have also shaped market reactions and financial stability beyond digital currency debates. 

The future of this stance remains uncertain after Powell steps down from his position. At present it is undeniable that the digital dollar will not be launched anytime soon.