Powell squashes the possibility that the Fed will develop its own digital currency
Published On Feb 11, 2025, 12:31 PM
Federal Reserve Chair Jerome Powell announced that the Federal Reserve will not pursue the development of its own digital currency, effectively ending speculation on the matter. He indicated that the project would not move forward as long as he remains in charge, emphasizing potential privacy concerns and the lack of a clear necessity for a Central Bank Digital Currency (CBDC). Powell's statements come amidst concerns about the implications of creating a CBDC and highlight the Fed's current focus on its FedNow payment system instead.
Stock Forecasts
GBTC
Negative
Investors could see a negative impact on cryptocurrency-related stocks and funds as the possibility of a Fed-issued digital currency has been quashed, which could reduce speculative interest in the crypto market. Overall sentiment towards crypto may dampen further with continued statements against a CBDC.
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