During a closed meeting with the House Financial Services Committee, the Chairman of the US Federal Reserve made an announcement on February 13 stating that his department is not prepared to start practical work on launching a digital dollar without Congressional approval. Jerome Powell emphasized that if the central bank were to create a national digital currency, it must have the authorization of Congress. He also mentioned the need for a separate legislative framework to regulate the circulation of a central bank digital currency (CBDC).
Jennifer Lassiter, the executive director of The Digital Dollar Project, previously stated that the Federal Reserve was awaiting instructions from the White House administration and Congress to commence substantial work on the digital dollar project. Lassiter emphasized the importance of congressional support in order to boost consumer confidence in the digital dollar and minimize the risk of legal complications that could potentially halt the project.
However, it is worth noting that some analysts at RBC Wealth Management raised concerns last year about the potential privacy and security risks associated with central bank digital currencies, suggesting that these risks may outweigh the benefits they may bring.