During his Senate confirmation hearing on Thursday, President Donald Trump's nominee for Treasury Secretary, Scott Bessant, dismissed the need for a US central bank digital currency (CBDC), assuaging long-held concerns of some crypto-watchers.
“I see no reason for America to have a central bank digital currency,” Besant told the Senate Finance Committee. “In my mind, a central bank digital currency is for countries that have no other investment options.”
Bessant's statements represent a departure from how various federal agencies have navigated the prospect of a central bank-issued digital dollar.
If Besant is confirmed as Treasury secretary when Trump takes office on Jan. 20, it could be a reversal of the federal government. CBDC Research Initiative It may be in play.
Bessant's statements at the Senate confirmation hearing agree with Trump. PromiseMade just a year ago, re-elected US CBCC “Never Let Go”. Trump Chosen by St Last year in November.
Bessant's position is consistent with broad Republican opposition to CBCCs.
In May 2024, the Council State anti-surveillance lawThis restricts the Federal Reserve Banks from directly or indirectly issuing digital currencies.
Sovereign Money: National Interest
They are Central Bank Digital Currencies or CBCCs. Digital versions The currency of a nation or state. CDBCs have been around for years in the U.S. There are currently two types: one for retail, designed for the public, and one for wholesale CDCs to facilitate interbank transactions.
According to the Atlantic Council, Bessant's comments come as 134 countries representing 98% of global GDP are exploring CBDCs. Data. This includes major economies such as China, which has tested the digital yuan at the 2022 Beijing Olympics.
In the year In March 2022, President Biden released one. Executive order For “responsible development” of digital assets, referring to how international financial authorities will “investigate and in some cases introduce CDCs”.
Janet Yellen, the current secretary of the Treasury and the former chairman of the Federal Reserve, supports the idea of exploring CBDCs. In March last year, the Federal Reserve announced CBDCs as “key mandate” Congress.
Several years after its inception, central bank digital currencies (CBCCs) have faced widespread criticism from the crypto community, arguing that they could increase government surveillance.
In 2023, the founder of Ethereum Vitalik Buterin in A Interview With CNBC CBDCs he was somewhat more hopeful [on]perhaps, naively, five years ago, “referring to the transparency and assurance guarantees that CDBCs are designed to have.”
Nothing new.
The Federal Reserve is studying the implementation of the CBC starting in 2021 and has released details. Report In the year Examining the potential benefits and risks in 2022.
However, Federal Reserve Chairman Jerome Powell said in August last year that he expected any digital dollar to require congressional approval.Nothing new.“To CBDCs.
“Some are actually implementing CBDC,” Powell said at the time. “We really aren't.”
Edited by Sebastian Sinclair
Daily Debrief Newspaper
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