Trump’s Treasury Pick Scott Bessent Rejects Need for a US Digital Dollar

President-elect Donald Trump’s nominee for Treasury secretary, Scott Bessent, told the Senate Finance Committee on Thursday that the Treasury should refrain creating a central bank digital currency.

“I see no reason for the US to have a central bank digital currency. In my mind, a central bank digital currency is for countries who have no other investment alternatives,” Bessent said.

He explained that a digital currency is more practical for countries that commonly hold foreign currencies like the Chinese yuan.

“If you hold US dollars, you can hold a variety of very secure US assets,” he added.

US Has Been Exploring Digital Dollar to Maintain Global Currency Leadership

The US Treasury began exploring the concept of a digital dollar in the early 2020s. By 2022, its efforts gained momentum. Cryptocurrencies and foreign digital currencies, especially China’s digital yuan, sparked this interest by challenging the US dollar’s global dominance.

In March 2022, President Joe Biden issued an executive order. He directed agencies to evaluate digital assets. The order also urged them to consider the possibility of a US central bank digital currency (CBDC).

Treasury Secretary Janet Yellen, under Biden, had stressed the need to advance policy and technical work on a CBDC, highlighting its importance for national interests as China makes major strides in this area.

Scott Bessent Calls Crypto ‘Freedom’ as Trump Pushes National Crypto Policy Agenda

In November, Trump selected Scott Bessent, a prominent hedge fund manager and vocal crypto advocate, as his nominee for Treasury Secretary. Should the Senate approve his nomination, Bessent is seen as someone who will introduce a pro-crypto stance into a pivotal economic position.

During a July interview on Fox Business, Bessent praised Trump’s support for cryptocurrency, linking it to Republican Party values. “Crypto is about freedom, and the crypto economy is here to stay,” he stated, highlighting how it draws in young and marginalized individuals to the financial sector.

Separately, Bloomberg reported Friday that Trump plans to issue an executive order to make crypto a national policy priority. He is also weighing the idea of creating a federal Bitcoin reserve.