The US Treasury Secretary nominee saw “no reason” for CBCC

Scott Bessant believes that the CBCC is only for countries that have no other investment options. They are only giving it “out of necessity,” he added.

President-elect Donald Trump's pick for US Treasury Secretary, Scott Bessant, says he sees no reason for the US to have a central bank digital currency (CBDC).

Besant spoke during his nomination hearing before the Senate Finance Committee on January 16. The hedge fund manager was responding to questions from Republican Senator Marsha Blackburn about how he would handle discussions about the US CBDC.

Besant replied: “I see no reason for America to have a central bank digital currency. In my mind, a central bank digital currency is for countries that have no other investment options,” he added. “Many of these countries operate on demand, whereas the US, if they hold US dollars, can hold different currencies.” Very reliable properties.”

Exploring CBDCs

Many countries are exploring the potential of CBDCs. For example, in 2022, Brazil's central bank announced that it would launch the CBCC, DREX, by the end of 2024.

In the year In August 2023, Russia launched its first CBCC pilot involving 13 banks. A report released at the time indicated that the country's CBCC will begin operations in 2025.

To date, only three countries have launched CBDCs: the Bahamas, Jamaica and Nigeria.

But the US has been hesitant to issue its own digital currency. However, although a study has come out on the feasibility of one in the US, US Federal Reserve Chairman Jerome Powell has said the department does not plan to start CBCC anytime soon in 2021.

Powell added that it will be “years rather than months” for the US to develop a digital currency and that they are looking at it “very carefully”.

Despite this, President Biden signed an executive order calling for proactive policies on Bitcoin and other cryptocurrencies by 2022 and urgent action on research and development of CBDC in the US.