Important points
- Treasury Secretary candidate Scott Bessent expressed skepticism about the need for a U.S. CBDC, suggesting it would be appropriate for countries with limited investment options.
- The Fed has been exploring the possibility of a CBDC since 2021, but Bessent's comments suggest a cautious stance under the Trump administration.
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President-elect Donald Trump's Treasury Secretary nominee, Scott Bessent, spoke out against the creation of a U.S. central bank digital currency (CBDC) during his Senate Finance Committee nomination hearing on Thursday.
“I see no reason for the United States to have a central bank digital currency,” said Bessent, founder of hedge fund Key Square Capital Management.
Bessent argued that CBDCs are suitable for countries with few investment options.
“In my opinion, central bank digital currencies are for countries that don't have other investment options. If you hold the US dollar, you have very safe US assets,” he said. .
The Fed has been considering the possibility of CBDCs since 2021, when Fed Chairman Jerome Powell announced plans to release a discussion paper on the topic.
Powell suggested that CBDCs would complement existing forms of money, rather than replace them. He also said the Federal Reserve would not issue CBDCs without explicit approval from Congress.
Bessent, who has previously expressed support for cryptocurrencies, told Fox Business in July that he was “thrilled that the president would embrace cryptocurrencies.”
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