Fed Chair on Digital Dollar: Trump’s CBDC Criticisms Are ‘Nothing New

Fed Chair on Digital Dollar: As Trump Opposes CBDCs, Fed Chair States Digital Dollar Brings ‘Nothing New

Fed Chair on Digital Dollar– On the campaign trail, former President Donald Trump has voiced strong concerns about the potential Orwellian implications of a digital dollar, suggesting that cryptocurrency holders should be worried. However, behind the scenes, Federal Reserve Chair Jerome Powell has indicated that there is no significant progress on developing a central bank digital currency (CBDC).

During Wednesday’s Federal Open Markets Committee meeting, Powell stated, In terms of a CBDC, there’s really nothing new going on. There’s not much going on at all.

The idea of a digital dollar has become a rallying point for many conservatives, including Republican Florida Governor Ron DeSantis and Senator Ted Cruz (R-TX). DeSantis, before ending his presidential campaign, had expressed concerns that such technology could be used by the government to monitor Americans or restrict their ability to purchase items like firearms and gasoline.

At the Bitcoin 2024 conference in Nashville last week, Trump assured Bitcoin enthusiasts that a CBDC would not be pursued under his administration. He promised to immediately order the Treasury Department and other federal agencies to cease and desist all steps necessary related to its development.

Even before fully embracing his role as a crypto president, Donald Trump had taken a firm stance against central bank digital currencies (CBDCs). At a rally in New Hampshire in January, he warned that such technology could give the government excessive control over Americans’ finances, suggesting it could even allow the government to take your money, and you wouldn’t even know it was gone.

In contrast, Federal Reserve Chair Jerome Powell addressed the topic during a press conference on Wednesday, noting that the central bank is actively keeping up with developments in the CBDC space, much like other major central banks around the world. Powell acknowledged that staying engaged with this work could prove beneficial in the future.

Globally, 73 countries are currently researching or developing CBDCs, with 36 of them already piloting their own versions, according to the Atlantic Council. To date, Jamaica, The Bahamas, and Nigeria are the only countries that have officially launched their digital currencies.

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