Federal Reserve Chairman Jerome Powell testified before the Senate Banking Committee on February 11 and addressed concerns about the issuance of a central bank digital currency ( CBDC ) in the United States.
Asked whether the United States could follow China's path and promise that the country would never have a central bank digital currency, Powell assured that would not happen under his leadership.
His announcement coincided with President Trump's signing of an executive order on January 23 prohibiting federal agencies from developing or promoting CBDC . At the same time, his administration supported the spread of digital assets and blockchain technology, which, unlike CBDC do not pose risks to financial stability and personal privacy.
Global development CBDC continues to gain momentum. According to a report by the Atlantic Council, 134 countries, representing 98% of the global economy, are exploring digital currencies. Of these, 66 are in the implementation stages, running pilot programs or full-scale rollouts.
China has further expanded its testing of a digital yuan, and the European Central Bank is also moving ahead with its multi-year digital euro initiative. Other countries, including India, Brazil and Russia, are also claiming success in their implementations. CBDC .
