A United States central bank digital currency (CBDC) remains a significant focus for the Federal Reserve, despite recent statements from Federal Reserve Chair Jerome Powell downplaying its immediate adoption.
US Representative Tom Emmer, known for his opposition to CBDCs, highlighted the continued pursuit of a CBDC by the Fed in a recent post on X, referencing a document reportedly shared with his staff during a Federal Reserve presentation to Congress.
As reported earlier by TheCoinRise, US presidential candidate Donald Trump has stated that he will “never allow” the creation of a CBDC in the country, adding that it is “a dangerous threat to freedom.”
Creation of a CBDC in the US
Emmer’s assertion comes shortly after Powell’s remarks before the Senate Committee on Banking, Housing, and Urban Affairs, where Powell emphasized that the US is not currently close to recommending or implementing a CBDC in any form.
However, the emergence of the document referenced by Emmer does not contradict Powell’s statements but rather affirms that the Federal Reserve is still actively considering CBDCs.
References to FedNow
The document reportedly outlines the Federal Reserve’s key duties in payment systems, including references to Automated Clearinghouse and FedNow, electronic payment systems that could facilitate the digitization of the US dollar.
This aligns with the Fed’s previous efforts to explore the potential benefits and risks of CBDCs, as demonstrated by a paper released in January 2022 and ongoing pilot programs under the digital dollar project.
Presidential Candidates Are Against a CBDC
Despite these developments, CBDCs remain a contentious topic, both within and outside the cryptocurrency industry. Former US President Donald Trump has expressed staunch opposition to CBDCs, labeling the digital dollar as a “very dangerous” concept and vowing to prevent its introduction to America.
Similarly, US presidential candidate Robert F. Kennedy Jr. has denounced CBDCs as a threat to human and civil rights, promising to combat their development.
A Controversial Topic
The House Financial Services Committee recently endorsed the Digital Dollar Pilot Prevention Act, aiming to restrict the Federal Reserve from conducting pilot programs for CBDCs without congressional approval.
The debate surrounding CBDCs reflects broader concerns about financial privacy and government surveillance. While the Federal Reserve continues to explore the feasibility of a digital dollar, opposition from various quarters underscores the challenges and complexities associated with introducing a CBDC in the United States.
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