Important takeaways
- Treasury Secretary nominee Scott Bessent expressed skepticism about the need for a US CBDC, suggesting it suits countries with limited investment options.
- The Federal Reserve has been exploring CBDC potential since 2021, but Bessent’s comments signal a cautious stance under the Trump administration.
Scott Bessent, President-elect Donald Trump’s Treasury Secretary nominee, opposed the creation of a US central bank digital currency (CBDC) during his nomination hearing before the Senate Finance Committee on Thursday.
“I see no reason for the United States to have a central bank digital currency,” said Bessent, founder of hedge fund Key Square Capital Management.
Bessent argued that CBDCs are better suited for nations with fewer investment options.
“In my eyes, a central bank’s digital currency is for countries that have no other investment options. If you have US dollars, you can hold very safe US assets,” he said.
The Federal Reserve has been exploring CBDC opportunities since 2021, when Fed Chair Jerome Powell announced plans to release a discussion paper on the subject.
Powell indicated that a CBDC would complement existing forms of money rather than replace them. He has also stated that the Federal Reserve will not issue a CBDC without express congressional approval.
Bessent, who has previously expressed his support for crypto, told Fox Business in July that he was “excited about the president’s embrace of crypto.”
