Dollar Numérique refused under the leadership of Jerome Powell
In a decisive stance, Jerome Powell stated unequivocally that as long as he heads the Federal Reserve, there will not be a digital dollar in the United States. This affirmation was made before the Senate Banking Committee just yesterday.
It appears that the Federal Reserve has no plans to digitize the dollar any time soon. Republicans in the US have been vocal about their opposition to the idea of a digital dollar, expressing concerns about potential government control over citizens’ financial transactions and perceived threats to traditional banks.
Anti-digital dollar sentiment fueled by Donald Trump’s campaign promises
Donald Trump, a high-profile Republican and previous president, made opposition to central bank digital currencies (CBDCs) a key tenet of his campaign platform. This further fueled the already palpable hostility towards a digital alternative to the dollar.
Jerome Powell, by aligning himself with this viewpoint, has affirmed the Dollar Numérique Refusé position. His words served to reassure the banking community, which has generally regarded with wariness the prospect of a digital dollar.
US diverges from other global powers in rejecting CBDC
The firm stance by the Fed’s Chairman supports a decree issued by Trump on January 23. The decree strictly prohibits the inception, issuance, and use of a digital dollar. However, the legal weight of such recent decrees from Trump remains under scrutiny.
With Powell’s term at the Federal Reserve set to last until May 2026, his remarks cement the reality that the US will not pursue a CBDC during this period. This puts the US at odds with other significant economies, such as China, actively developing its digital yuan, and the European Union, making strides towards establishing a digital euro.
Discover Sarah Knafo’s point of view about this subject here
Financial institutions uneasy about the concept of a dollar beyond their control
In the wake of increasing global de-dollarization, the thought of a dollar unlinkable with banks intrigues and concerns numerous American financial organizations. The US appears to be pulling further away from the concept of a CBDC, a divergence that contrasts starkly with other economies approaching a digitalized monetary system – notably Russia, which is studying the possibility of a digital ruble aimed at dodging sanctions and instituting a unified currency among BRICS nations.
However, it’s imperative to take into account the inherent financial risks associated with investing in cryptocurrencies. Guarantees of returns are certainly not a given.
High Yield, High Risk: Parsing the Dollar Numérique Refusé
The allure of high yielding financial offerings that promise substantial returns is undeniable. However, it’s crucial to note that they are inherently coupled with significant risks.
Investors should rigorously evaluate whether these risk levels align aptly with their financial ambitions, investment timeline, and the level of tolerance they have towards potential losses.
Remember, investing shouldn’t be a gamble. It’s imperative to invest only an amount that you’d be comfortable with losing. Treading on the path of high-yield, high-risk investments should only be done after considering these factors.
Understanding Crypto in Relation to Dollar Numérique Refusé
As a seasoned journalist who’s been serving Cryptoast since 2017, I’m deeply vested in the world of decentralization, with a keen eye on matters related to privacy and regulation.
My principal area of study lies within traditional economics and finance, carefully dissecting how fluctuations in these sectors ripple out to impact the cryptocurrency landscape.
Over my tenure at Cryptoast, I have presented a series of 3328 articles, all endeavored with the objective of delivering a discerning and unique perspective to our committed readers.
