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Scott Bessent, President-elect Donald Trump’s nominee for Treasury secretary, informed the Senate Finance Committee on Thursday that the Treasury should refrain from creating a central bank digital currency.
“I see no reason for the US to establish a central bank digital currency. In my view, a central bank digital currency is intended for countries that lack alternative investment options,” Bessent remarked.
He elaborated that a digital currency is more practical for nations that typically hold foreign currencies, such as the Chinese yuan.
“If you hold US dollars, you can possess a variety of very secure US assets,” he continued.
US Has Been Investigating Digital Dollar to Maintain Global Currency Dominance
The US Treasury began examining the concept of a digital dollar in the early 2020s. By 2022, its initiatives gained traction. The rise of cryptocurrencies and foreign digital currencies, particularly China’s digital yuan, fueled this interest by challenging the global supremacy of the US dollar.
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In March 2022, President Joe Biden issued an executive order directing agencies to assess digital assets. The order also encouraged them to explore the potential for a US central bank digital currency (CBDC).
Treasury Secretary Janet Yellen, under Biden, emphasized the importance of advancing policy and technical efforts regarding a CBDC, underscoring its relevance for national interests as China makes significant progress in this domain.
Scott Bessent Describes Crypto as ‘Freedom’ as Trump Advocates National Crypto Policy
In November, Trump appointed Scott Bessent, a well-known hedge fund manager and outspoken crypto supporter, as his nominee for Treasury Secretary. If the Senate confirms his nomination, Bessent is anticipated to bring a pro-crypto perspective to a crucial economic role.
During a July interview on Fox Business, Bessent commended Trump’s backing of cryptocurrency, associating it with Republican Party principles. “Crypto is about freedom, and the crypto economy is here to stay,” he stated, emphasizing its appeal to younger and marginalized individuals in the financial sector.
Separately, Bloomberg reported on Friday that Trump intends to issue an executive order to prioritize crypto as a national policy. He is also considering the establishment of a federal Bitcoin reserve.
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