Scott Bessent, President-elect Donald Trump’s likely Treasury Secretary pick, has expressed worries regarding the United States’ adoption of a Central Bank Digital Currency (CBDC). During his confirmation hearing with the Senate Finance Committee on January 16, Bessent explained that he saw no reason for the United States to pursue a digital dollar. He argued that countries with limited investment options, not the United States, which already provides stable assets like government bonds, are the primary target for CBDCs.
Bessent’s remarks represent a significant break from the expanding global trend of experimenting with digital currency. While countries such as China have already developed their own digital currencies, Bessent believes the United States does not have the same need for such a system. His remarks mirror Trump’s earlier pledge to oppose the creation of a digital dollar, a stance that many in the Republican Party maintain.
The topic of CBDCs in the United States gathered traction under the Biden administration, with President Biden signing an executive order in 2022 to investigate the construction of a digital dollar. However, resistance from MPs, notably Bessent, highlights the ongoing debate about potential concerns, such as financial privacy breaches and government spying.
If confirmed, Bessent’s leadership might signal a shift in the US government’s attitude on CBDCs, perhaps altering the current trajectory of digital currency research.
