Scott Bessent, the incoming Treasury Secretary in the Trump administration, opposes the introduction of a Federal Reserve digital currency.
The prospect of a U.S. digital dollar appears to be fading, according to recent statements by Scott Bessent, who is set to become Treasury Secretary in Trump’s future administration. On January 16, during a hearing before the U.S. Senate Finance Committee, Bessent expressed skepticism about the implementation of a central bank digital currency (CBDC) in the United States.
In response to questions from Republican Senator Marsha Blackburn, Bessent stated:
“I see no reason for the United States to have a central bank digital currency. A CBDC is for countries who have no other investment alternatives. The United States, on the other hand, already offers a variety of secure assets for those holding dollars.”
Bessent’s stance aligns with that of President-elect Donald Trump, who promised during his campaign that “there will never be a CBDC” under his presidency. According to Republicans, a CBDC could pose potential risks to financial privacy and national security. This position marks a sharp contrast with the approach of the Biden administration, which initiated studies in 2022 to explore the implementation of a digital dollar through an executive order.
Last May, the U.S. House of Representatives passed the CBDC Anti-Surveillance State Act, a bill that would prohibit the Federal Reserve from issuing a digital currency. The bill now moves to the Senate, currently controlled by Republicans, where it will undergo further review and debate. If approved by the Senate and signed into law by President Trump, it would prevent the Federal Reserve from issuing a CBDC.
