Trump’s Treasury Secretary Nominee Bessent Rejects US Digital Dollar (CBDC) at Senate Hearing

Treasury Secretary nominee Scott Bessent delivered an unequivocal message about digital currencies during Thursday’s Senate confirmation hearing, explicitly rejecting the need for a U.S. Central Bank Digital Currency (CBDC). “I see no reason for the U.S. to have a central bank digital currency,” Bessent told the Senate Finance Committee. “In my mind, a central bank digital currency is for countries who have no other investment alternatives.”

The former hedge fund manager’s testimony, while primarily focused on tax policy, included notable comments about the future of digital finance. When discussing the Treasury’s financial-crimes division and terrorist financing concerns, Bessent stated, “I believe we have to have a 2025 approach to… digital currencies.” This modern outlook on digital assets appears informed by personal experience in the sector, as financial disclosures revealed he recently divested from bitcoin ETF holdings following his nomination.

While many countries, particularly China, have launched or piloted CBDCs, Bessent argued they have generally pursued them “out of necessity,” emphasizing that the United States has no such need. His stance has already garnered support from industry stakeholders, including the Cedar Innovation Foundation.

Bessent’s previous public statements on cryptocurrency have been supportive of the industry’s growth. In a July interview with Fox Business, he declared, “Crypto is about freedom and the crypto economy is here to stay.” These positions could signal the potential direction of Treasury policy should Bessent receive Senate confirmation as President-elect Trump’s Treasury Secretary, suggesting an approach that embraces digital innovation while maintaining skepticism toward government-issued digital currencies.

Who is Scott Bessent?

Bessent is a prominent hedge fund manager and investor who was previously Chief Investment Officer at Soros Fund Management and later founded Key Square Group. He gained recognition for his successful trades, including being part of the team that profited over $1 billion from betting against the British pound on Black Wednesday in 1992. Most recently, he served as a major economic advisor and fundraiser for Donald Trump’s 2024 presidential campaign, hosting events that raised tens of millions of dollars.

Article Source: Coindesk