Scott Bessent rejects U.S. CBDC, signaling possible policy shift

In a Thursday Senate confirmation hearing, President-elect Donald Trump’s Treasury Secretary nominee, Scott Bessent, dismissed the idea of a U.S. central bank digital currency (CBDC), easing the concerns some crypto observers have held for a long time.

Scott Bessent said at the Senate Finance Committee, “I see no reason for the U.S. to have a central bank digital currency.” According to Bessent, a central bank digital currency is for countries lacking other investment alternatives.

However, Bessent’s statements differ from the current trend of various federal agencies investigating the feasibility of a central bank digital dollar.

If Bessent is confirmed as Treasury Secretary on January 20, the federal government’s CBDC research initiatives can be turned around.

Bessent is not alone in his criticism of CBDC

Bessent’s statements at Trump’s Senate confirmation hearing are consistent with Trump’s vow a year ago that upon reelection, he would “never allow” a U.S. CBDC. Trump nominated Bessent in November 2023. Bessent is not alone in opposing central bank digital currencies; it also aligns with the broader criticism of many Republicans.

Last May, the House approved the Anti-Surveillance State Act that would bar Federal Reserve banks from directly or indirectly issuing digital currencies.

A central bank digital currency is a digital version of a country’s official currency. The U.S. has explored digital currencies for years. There are two main types of CBDCs: retail CBDCs targeted at normal consumers and wholesale versions between different financial institutions.

According to Atlantic Council data, 134 countries, encompassing 98% of global GDP, are looking into central bank digital currencies. China has already tried out its digital yuan, testing during the 2022 Beijing Olympics.

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