A Digital Dollar From the Fed? Not On Jerome Powell’s Watch

Federal Reserve Chair Jerome Powell said the central bank will not launch its own digital currency while he is in charge, shutting down the possibility of the Fed launching an electronic version of the dollar anytime soon.

Powell made the pledge Tuesday as he faced questions from the Senate Banking Committee in his twice-yearly report to Congress on monetary policy. Bernie Moreno, a Republican from Ohio, asked Powell to kibosh any possibility of the Fed launching its own electronic currency, as China and several other countries have done.

“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?” Moreno asked.

“Yes,” Powell replied.

The Fed has studied the idea of launching its own electronic version of the dollar, which could allow people to make instant payments.

Some fed officials have expressed skepticism about advantages a digital currency would offer, considering it’s already possible to transfer money electronically through the banking system.

Cryptocurrency advocates have also criticized the idea, since it would reduce the usefulness of bitcoin and other digital currencies as payment methods, while other critics have raised concerns about privacy.

Powell had previously said the Fed was “nowhere close” to launching its own currency. His latest comments shut out the possibility of a CBDC being launched at least until the end of his term in May 2026.