The digital dollar initiative faces a definitive halt as Federal Reserve Chairman Jerome Powell firmly opposes implementing a Central Bank Digital Currency (CBDC) during his leadership. At a Senate Banking Committee hearing on February 11, 2025, Powell’s clear rejection of a digital currency matches some recent executive actions and several legislative efforts to prevent federal agencies from developing government-backed digital money, marking a crucial moment for the future of digital dollar development in the United States.

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Why the Digital Dollar (CBDC) Won’t Launch Under Powell’s Leadership

Powell’s Clear Stance Against CBDC

During the Senate hearing, Senator Bernie Moreno stated:

“Something that concerns me a lot is the idea that we would even look like China in any way. Can I have your commitment that as long as you are the Chairman of the Federal Reserve System that we will never have a central bank digital currency?”

Multiple experts view Powell’s response as a final word on a potential digital dollar implementation. Several financial analysts note that the Federal Reserve’s position shows growing worries about government-controlled digital currencies.

Executive and Legislative Backing

A few key measures in President Trump’s January 23, 2025 executive order stop federal agencies from developing CBDCs. Some lawmakers have proposed the No CBDC Act in Congress, creating numerous barriers against a digital dollar. Various officials express concerns about government overreach.

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Privacy and Control Concerns

The debate around digital dollar implementation continues to focus on privacy issues.

Congressman Tom Emmer stated:

“[A CBDC could] give the federal government the ability to monitor and control individual Americans’ spending habits.”

Global CBDC Landscape

While some U.S. officials oppose CBDCs and the digital dollar concept, about 134 countries representing 98% of the global economy explore digital currencies. Multiple nations have reached advanced stages of development. Several major economies like China, India, and Russia lead this change.

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Market Impact and Future Implications

The Federal Reserve’s bold take on the digital dollar opens up several paths for digital assets while keeping some strict privacy rules. Various experts see Powell’s rock-solid commitment bringing stability to numerous traditional systems, laying out multiple possibilities for future money development.