Scott Bessent, the Treasury Secretary nominee proposed by Donald Trump, stated he does not support the US developing a central bank digital currency (CBDC), asserting that this is not a necessary direction for America.

Statement at the Senate hearing

During the Senate Finance Committee hearing, Bessent stated:

"I see no reason for the US to have a central bank digital currency."

He emphasized that CBDCs are only suitable for countries without other investment options, implying that the US does not need to compete with economies experimenting with this type of currency.

If confirmed as Treasury Secretary, Mr. Bessent could put an end to the CBDC research initiatives that the federal government is pursuing.

Trump and the stance against CBDCs

Bessent's views align with Donald Trump, who stated last year that he would "never allow" a digital USD if re-elected.

Additionally, the Republican Party strongly opposes CBDCs, with the House passing the Anti-State Surveillance Act in May 2024, restricting the Federal Reserve's ability to issue digital currency.

Global CBDC development context

Currently, 134 countries, accounting for 98% of global GDP, are researching CBDCs, with China having tested the digital yuan at major events such as #Olympic 2022.

However, in the US, despite pushes from leaders like Treasury Secretary Janet Yellen and research from the Federal Reserve, CBDCs have not progressed far. Fed Chair Jerome Powell has asserted that any digital USD would need Congressional approval.

Response from the cryptocurrency community

CBDCs have faced significant criticism from the crypto community, with concerns that they could enhance government surveillance capabilities. Vitalik Buterin, co-founder of $ETH , has also expressed disappointment, stating that the potential for transparency and verification of CBDCs has not been realized as expected.

Warning

Although the US has temporarily halted CBDC research, investors need to closely monitor developments globally, especially in large economies like China. At the same time, consider carefully when investing in the crypto market, which always carries risks and significant volatility.