Fed Chair Jerome Powell Prioritizes Privacy, Eases CBDC Concerns The U.S. Federal Reserve Chair Jerome Powell reassured the Senate Banking Committee that a
central bank digital currency (CBDC) is not on the immediate horizon.
While the concept is being studied, Powell emphasized that
individual accounts for all Americans are not in the cards. The Fed intends to maintain its current system with
only banks having accounts.
Powell made it clear that any future digital dollar would involve
working with banks, ensuring privacy and avoiding direct government surveillance of transactions.
Republican Senators have expressed concerns over CBDCs, with Sen. Ted Cruz warning about potential government access to
transaction-level data.
On the topic of interest rates, Powell hinted at a cautious approach, waiting for more confidence in sustainable inflation before considering
rate cuts.
