During a Senate confirmation hearing on Thursday, Scott Bessent, President-elect Donald Trump’s nominee for Treasury Secretary, rejected the concept of a U.S. central bank digital currency (CBDC), alleviating concerns that many crypto enthusiasts had long harbored.
At the Senate Finance Committee, Bessent stated, “I see no reason for the U.S. to have a central bank digital currency.” He argued that a digital currency from a central bank is typically intended for nations that lack alternative investment options.
Nevertheless, Bessent’s remarks stand in contrast to the ongoing efforts of various federal agencies exploring the viability of a central bank digital dollar.
Should Bessent be confirmed as Treasury Secretary on January 20, it could significantly alter the trajectory of federal initiatives on CBDC research.
Bessent’s Opposition to CBDC is Not Unique
Bessent’s comments during Trump’s Senate confirmation session echo Trump’s statement last year that, if reelected, he would “never allow” a U.S. CBDC. Trump nominated Bessent in November 2023. Bessent’s opposition fits within a broader critique of central bank digital currencies shared by many in the Republican Party.
In May, the House passed the Anti-Surveillance State Act, which would prevent Federal Reserve banks from issuing digital currencies directly or indirectly.
A central bank digital currency represents a digital version of a nation’s official currency. The U.S. has been examining digital currencies for several years, with two primary categories of CBDCs: retail CBDCs aimed at everyday consumers and wholesale versions utilized among different financial institutions.
According to data from the Atlantic Council, 134 countries—representing 98% of the global GDP—are investigating central bank digital currencies. China notably began testing its digital yuan during the 2022 Beijing Olympics.
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