US President-elect Donald Trump’s nominee for Treasury Secretary, Scott Bessent, expressed his opposition to the idea of a US central bank digital currency (CBDC) during his Senate Finance Committee nomination hearing today. “I see no reason why the U.S. should have a central bank digital currency,” Bessent said. “To me, a central bank digital currency is for countries that have no other investment alternatives.” CBDC, a digital version of a country’s fiat currency issued and regulated by its central bank, has been a topic of debate among U.S. policymakers. While the Fed has researched the concept and released a 2022 report on its potential benefits and risks, officials including Fed Chair Jerome Powell have reiterated that CBDC will not be issued without congressional approval. Related News: Extremely Dovish Interest Rate Cut Statements from FED Member Waller - Here are the Must-Know Details of the Surprise Speech Outgoing Treasury Secretary Janet Yellen has encouraged research into CBDCs, noting that both opportunities and challenges must be considered. But skepticism remains strong among some lawmakers, particularly Republicans, that CBDCs could lead to excessive government access and surveillance of financial transactions. CBDCs are gaining momentum globally, with 134 countries, representing 98% of global GDP, researching or developing CBDCs, according to the Atlantic Council, but the US remains cautious. Bessent, a hedge fund manager appointed by Trump in late November, has expressed support for cryptocurrencies. He told Fox Business in a July interview that he was “thrilled that the President is embracing crypto.” *This is not investment advice. Continue Reading: Will the Digital Dollar Come? The new US Treasury Secretary Puts an End to the Issue
