FED Chairman Jerome Powell recently spoke to the Senate Banking Committee about the idea of introducing a digital version of the dollar. He made it clear that the U.S. is only thinking about it and hasn't made any decisions yet.
Powell explained that if the U.S. ever creates digital money, it won't be like having a bank account directly with the government. Instead, it would involve working with regular banks.
He assured lawmakers that there's no rush to make this happen and that it would only happen with approval from Congress. This means that politicians would have to agree before anything is decided.
When asked if Congress needs to give the green light for digital money, Powell said yes. This shows that the Federal Reserve wants to do things the right way and involve the government in important decisions.
During the discussion, Powell also talked about interest rates and how immigration affects the economy. He said that before making any big decisions about money, they need to be sure it's the right thing to do.
Powell made it clear that if digital money ever becomes a reality, people's privacy would be protected. Unlike in some other countries, where the government can see everything you do with digital money, the U.S. wants to make sure people's private information stays safe.
Some politicians have been worried about the government having too much control if digital money is introduced. But Powell reassured everyone that the Federal Reserve is just looking into it for now and hasn't made any final decisions.
He also said that before anything happens, Congress and the White House would have to agree. This shows that the Federal Reserve wants to make sure everyone is on board with any changes to how money works.
