Michaela Alvez
President-elect Donald Trump’s nominee for Treasury Secretary, Scott Bessent, has outlined his views on key financial matters during his nomination hearing.
During Thursday’s hearing, Bessent briefly touched on cryptocurrency matters. However, he made it clear that he strongly opposes the concept of a U.S. central bank digital currency (CBDC) and reiterated his support for a more progressive approach to crypto regulation.
The hedge fund manager told the Senate Finance Committee, which is set to consider his confirmation, that the Federal Reserve should refrain from issuing a digital dollar. His position reflects concerns within the crypto industry, which views the idea as a potential government overreach into the digital asset space.
“I see no reason for the U.S. to have a central bank digital currency,” Scott Bessent said. “In my mind, a central bank digital currency is for countries who have no other investment alternatives. […] Many of these countries are doing it out of necessity, whereas the US — if you hold US dollars, you can hold a variety of very secure US assets.”
During the hearing, it was clarified that Bessent’s questioning was based on his expected nomination by President-elect Trump, with the official inauguration scheduled for January 20.
Is the New Administration Shifting Its Stance on CBDCs?
In 2022, President Joe Biden signed an executive order directing the Treasury Department to explore the possibility of creating a CBDC. While the move was seen as a step toward enhancing financial inclusion for Americans, it had drawn sharp criticism from many Republican lawmakers, who argued that a digital dollar could jeopardize financial privacy and national security.
During his presidential campaign, Trump made a bold promise to the crypto community, vowing that under his administration the U.S. would never implement a CBDC.
In May 2024, the Republican-led House of Representatives approved the CBDC Anti-Surveillance State Act. This legislation aims to prohibit the Federal Reserve from creating or implementing a CBDC through any direct or indirect means.
The Senate Banking Committee received the CBDC Anti-Surveillance State Act from the House in June 2024. With Republicans taking control of the chamber in January, it remains unclear if or when the legislation will be revisited.
Several countries around the world, including China, have already launched or piloted CBDC. However, Scott Bessent argued that these nations pursued CBDCs “out of necessity,” adding that the United States does not face similar circumstances and has no pressing need to adopt a digital dollar.
Read More
- Senator Warren Tells Treasury Nominee To Be Ready for Questions at Confirmation Hearing
- Bessent to Divest Hedge Fund Assets if Confirmed as Treasury Head
- Canadian Consumers Favor Cash Over Digital Currency: Report
Michaela has no crypto positions and does not hold any crypto assets. This article is provided for informational purposes only and should not be construed as financial advice. The Shib Magazine and The Shib Daily are the official media and publications of the Shiba Inu cryptocurrency project. Readers are encouraged to conduct their own research and consult with a qualified financial adviser before making any investment decisions.
