The chairman of the US Federal Reserve (Fed) Jerome Powell said that while he is the post of head of the regulator, the Fed will not develop his own digital currency, writes RBC Crypto.
Experts evaluated such a statement as positive to ensure financial freedom and confidentiality. And the central banks of other countries see in such a policy the opportunity for the development of their own digital currencies.
As part of the speech on issues of monetary policy and regulation, Powell affirmatively answered the question of Senator Bernie Moreno about whether he can promise that he is still at the head of the Fed, there will be no digital currency of the Central Bank (CBDC), according to CNBC quote .
CBDC (Central Bank Digital Currency) – digital currency, which is the third form of national currency (in addition to cash and non -cash). The issue and control over CBDC is directly carried out by central banks. The Federal Reserve System (US Federal Reserve-Federal Reserve System) plays the role of the Central Bank of the United States of America, which pursues a monetary policy and regulates the country’s financial system. Although some CBDC include elements of cryptocurrency and blockchain technologies, and digital currencies are available in the form of cryptographic tokens, these assets are not cryptocurrency, as they have a centralized issuer. Many countries are developing or already testing their own CBDC. For example, in China, digital yuan has been tested since 2020. And in Russia, the digital ruble since 2023 has the status of national currency. Digital ruble in simple words: why it is needed and how to use it
The ban on a digital dollar
The “ban on CBDC” has become one of the campaign promises of US President Donald Trump. During the election campaign, at the Bitcoin Conference conference, 2024 in Nashville Trump, in the event of re -election, would order the Ministry of Finance and other federal agencies “refrain from all the steps necessary” to create CBDC.
Having took office, Trump almost immediately fulfilled this promise, a few days after the inauguration on January 20, signing an executive decree on the “strengthening of the US leadership in digital finances”. In it, in addition to studying the issue of creating a national reserve, including cryptocurrencies, it is ordered to prohibit federal agencies to develop, release or promote digital national currencies (CBDC).
Instead of CBDC, the decree indicates priorities for the development of stablecoins secured by the US dollar: “The promotion and protection of the independence of the US dollar, including by promoting the development and growth of legitimate and legitimate stablecoins provided by the dollar around the world.”
And Powell’s statement about the “Refusal of CBDC” sharply contrasts with the Fed’s opinion of past years. Back in August 2024, the US federal reserve banks were engaged in the development and discussion of possible CBDC options.
Other states
Nevertheless, the US refusal of the digital dollar is only a local decision and has not yet become global trends. So, for example, the European Central Bank (ECB) considers digital euros as a response to Trump’s strategy by stablecoin
The ECB said that the plan for creating digital euros will accelerate against the background of the decree of Donald Trump, which prohibits the Fed to release digital national vascular (CBDC), reports Reuters. According to a member of the board of ECB Pierrot Chipolon, the promotion of stablecoins creates difficulties for banks and makes digital euro necessity.
The ECB is only experimenting with digital euros. The final decision on launch will be made only after approving the relevant legislation.
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Source: Cryptocurrency
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