Scott Bessent Rejects US Digital Currency Proposal

During his Senate confirmation hearing, Scott Bessent, President-elect Donald Trump's nominee for Treasury Secretary, expressed strong opposition to the establishment of a U.S. central bank digital currency (CBDC). He argued that the U.S. has ample investment alternatives, unlike countries that have adopted CBDCs out of necessity. Bessent's stance aligns with Trump's previous commitment to prevent the implementation of a digital dollar and reflects the broader Republican opposition to CBDCs, which are seen as potential government overreach. Legislative efforts, such as the recently passed Anti-Surveillance State Act, aim to restrict the Federal Reserve from issuing digital currencies. Bessent emphasized the need for a modern regulatory approach to digital assets but firmly maintained that a CBDC is unnecessary for the U.S. As discussions around CBDCs continue globally, Bessent's confirmation could signal a shift away from federal research initiatives into digital currencies.