Jerome Powell, the chairman of the Federal Reserve, made a crucial commitment during the latest Senate Hearing, promising that the U.S. will never have a central bank digital currency (CBDC) as long as he leads the federal agency. A few days ago, U.S. President Donald Trump signed an executive order banning the creation and issuance of CBDC in the country, fulfilling a promise he made during the election campaign.
The order defines CBDC as “a form of digital money or monetary value, denominated in the national unit of , that is a direct liability of the central bank.” Now, when the chairman of the Federal Reserve has agreed to dump the concept of the CBDC.
JUST IN: 🇺🇸 Fed Chair Powell commits to never creating a central bank digital currency (CBDC). pic.twitter.com/sGkf9oK7qT
— Bitcoin Magazine (@BitcoinMagazine) February 11, 2025
Jerome Powell: No Rush to Slash Interest Rates
In the speech, Jerome Powell also refused to cut the federal rates, saying “no rush” for cutting its short-term interest rate again by citing an economy that is “strong overall,” with low unemployment and inflation that remains above the Fed’s 2% target.
Jerome Powell said that the Federal Reserve would work to help to end debanking after Sen. Cynthia Lummis questioned “Operation Chokepoint 2.0,” which is an alleged effort by federal banking regulators to stifle the cryptocurrency industry. In response, he said, “I am struck, and my colleagues and I are struck, by the growing number of cases of what appears to be debanking.”
Also Read: Rate Cuts Can Begin Before 2% Inflation: Jerome Powell
