The U.S. Doesn’t Need a CBDC Right Now, Says Trump’s Treasury Pick

During his Senate confirmation hearing, Scott Bessent, President-elect Donald Trump’s nominee for Treasury Secretary, dismissed the idea of a U.S. central bank digital currency (CBDC), stating that such tools are unnecessary for the country.

“A CBDC seems more fitting for nations without robust investment opportunities,” Bessent remarked, signaling a skeptical stance on the concept.

While the Federal Reserve has studied the pros and cons of issuing a CBDC, its leaders, including Chair Jerome Powell, have emphasized that no such move would occur without congressional authorization.

Current Treasury Secretary Janet Yellen has encouraged further research but has maintained a cautious outlook. Critics, particularly among Republicans, warn that a CBDC could lead to heightened government oversight of personal transactions. Meanwhile, other nations continue to explore the technology, with 134 countries reportedly assessing or developing CBDCs.

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Bessent, a proponent of cryptocurrency innovation, has publicly praised Trump’s supportive approach to digital assets. In an earlier interview, he expressed optimism about advancing crypto policies under the new administration. His nomination has received backing from advocacy groups like the Cedar Innovation Foundation, which described him as well-equipped to create a regulatory framework that could elevate the U.S. as a leader in blockchain technology.

As Treasury Secretary, Bessent is expected to prioritize fostering growth in the crypto sector while steering clear of government-issued digital currencies. His appointment signals a commitment to driving innovation in the financial ecosystem while maintaining a skeptical view of central bank-driven solutions.

Source

Kostadin Dimitrov