Treasury Nominee Scott Bessent Rejects U.S. CBDC, Backs Crypto Innovation Under Trump
President-elect Donald Trump’s nominee for Treasury Secretary, Scott Bessent, has firmly rejected the idea of a U.S. central bank digital currency (CBDC), aligning with growing skepticism among Republican lawmakers. During his Senate Finance Committee hearing on Thursday, Bessent emphasized his preference for alternative approaches to digital finance, signaling a pro-crypto stance for the incoming administration.
Bessent’s Stance on a U.S. CBDC
When questioned about his views on a potential CBDC, Bessent was clear in his opposition: “I see no reason for the U.S. to have a central bank digital currency. In my mind, a central bank digital currency is for countries who have no other investment alternatives.”
CBDCs, digital versions of fiat currencies issued by central banks, have been a topic of global debate. While the Federal Reserve has explored the possibility, Fed Chair Jerome Powell has stated that no CBDC would be issued without congressional approval. Outgoing Treasury Secretary Janet Yellen has taken a cautious approach, encouraging further research into potential opportunities and challenges.
Despite these discussions, Republican lawmakers and critics have expressed concerns about the implications of a CBDC, particularly regarding potential government surveillance of financial transactions. Globally, 134 countries—representing 98% of global GDP—are currently exploring CBDCs, according to the Atlantic Council.
A Pro-Crypto Vision for the Treasury
Bessent’s opposition to a CBDC is consistent with his positive outlook on cryptocurrency. Speaking to Fox Business in July, he expressed enthusiasm for President Trump’s pro-crypto agenda, signaling a broader shift in U.S. financial policy under the new administration.
The Cedar Innovation Foundation, a prominent crypto-advocacy group, has praised Bessent’s nomination. “Scott Bessent is an exceptionally qualified leader ready to implement the pro-crypto mandate voters delivered last November,” said Colin McLaren, CIF’s engagement director. “As Secretary of the Treasury, he will play a critical role in shaping and implementing a regulatory framework for crypto that will lay the foundation for American leadership, innovation, and growth.”
What’s Next for U.S. Financial Policy?
As Bessent prepares to take the helm at the Treasury, his leadership could mark a pivotal moment for the intersection of finance and technology in the U.S. His rejection of a U.S. CBDC underscores a focus on fostering private-sector innovation rather than adopting state-controlled digital currencies. With President Trump’s administration emphasizing cryptocurrency adoption and innovation, Bessent is positioned to shape policies that may bolster the country’s leadership in digital finance.