Treasury nominee Scott Bessent took a firm stance against CBDCs. This happened at Thursday’s Senate hearing. He said that he can see “no reason” for a U.S. digital dollar. This matches President-elect Trump’s promises and points to changes in U.S. crypto policy.
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CBDC (Digital Money): What It Means for Crypto Investors
Breaking with Current Policy
Federal plans support CBDCs. The treasury nominee CBDC stance goes against this support. The Federal Reserve started looking at digital dollar plans in 2021. Treasury Secretary Janet Yellen supports this research. But Bessent has some different thoughts.
“I see no reason for the U.S. to have a central bank digital currency,” he told the Senate. “In my mind, a central bank digital currency is for countries who have no other investment alternatives.”
Global Context and U.S. Situation
134 out of the countries of the world make up roughly 98% of global GDP and are exploring multiple CBDC options. Some analysts suggest Bessent’s stance hints at a U.S. policy shift.
While China tested its digital yuan at the 2022 Olympics, Federal Reserve Chair Jerome Powell noted in August that the U.S. has “nothing new” on CBDCs. “Some of them are actually seriously looking at implementing a CBDC,” Powell stated. “We’re really not.”
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Crypto Community Response
Various experts note the treasury nominee CBDC rejection matches certain crypto industry concerns about surveillance. Ethereum co-founder Vitalik Buterin changed his view, saying he “had somewhat more hope [on CBDCs], probably, naively, five years ago.” Several observers indicate this reflects wider concerns about government control through digital currencies.
Legislative Momentum
Many Republicans opposed CBDCs by passing the Anti-Surveillance State Act in May 2024. This law limits quite a few Federal Reserve banks from issuing digital currencies. Sources say the digital dollar debate grew after Biden’s March 2022 order called for “responsible development” of digital assets, noting how global authorities are “exploring, and in some cases introducing” CBDCs.
What’s Next?
Multiple analysts suggest that if approved as Treasury Secretary, Bessent’s central bank digital currency views could reshape U.S. crypto policy. The treasury nominee CBDC position follows Trump’s November 2024 promise to “never allow” a U.S. digital dollar, indicating a potential new direction in the federal cryptocurrency approach.
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