WASHINGTON—Federal Reserve Chair Jerome Powell stated this week that the central bank will not pursue the development of its own digital currency while he remains in charge.
His remarks put an end to years of speculation about whether the Fed would follow the lead of other global institutions, such as China, in creating an official cryptocurrency similar to Bitcoin and its counterparts. Speaking during a Senate hearing, Powell made it clear that the initiative would not proceed, CNBC said
“Can I have your commitment that as long as you’re the chairman of the Federal Reserve system that we will never have a central bank digital currency?” Sen. Bernie Moreno (R-OH) asked Powell during the chair’s semiannual testimony on monetary policy and regulation.
“Yes,” Powell responded.
“Thank you for that, I think that’s extremely important,” Moreno said. “It makes me very happy to hear you say that.”
Powell’s term as Fed chief ends in May 2026.
The Fed has been examining the issue for at least four years, releasing an extensive study in 2022 that detailed the advantages and disadvantages without drawing a conclusion, CNBC noted.