Scott Bessent Slams Brakes on US Digital Dollar Plans

Crypto News Regulation

Scott Bessent Slams Brakes on US Central Bank Digital Currency Plans

Written by Aaron S.,

Editor-In-Chief

Last Updated: January 17, 2025

Key Takeaways

Scott Bessent opposes a US central bank digital currency, arguing it suits countries with fewer investment options;
His stance aligns with Trump’s promise to block CBDCs and could halt federal research into a digital dollar;
While 134 nations explore CBDCs, Bessent believes the US financial system is robust enough to avoid adopting one.

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Scott Bessent Slams Brakes on US Central Bank Digital Currency Plans

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Scott Bessent, nominated by President-elect Donald Trump to lead the Treasury Department, has firmly dismissed the need for a US central bank digital currency (CBDC).

His stance has reassured critics who have long been wary of a federal move toward digital currency.

During his Senate confirmation hearing on January 16, Bessent stated, “I see no reason for the US to have a central bank digital currency”, adding that such systems are more suited for nations with limited investment options.

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CBDCs are digital forms of a country’s currency, and they are typically categorized into two types: retail, for everyday public use, and wholesale, for transactions between banks.

According to data from the Atlantic Council, The concept has gained global attention, with 134 countries, which represent 98% of global GDP, currently researching or testing CBDCs.

Bessent's stance aligns with Donald Trump’s previous commitment to prevent a US CBDC. Trump, who nominated Bessent in November 2024, promised to block any such initiative if reelected.

His comments also represent a change from the federal government’s earlier efforts to study the potential of a digital dollar. If confirmed when Trump takes office on January 20, Bessent’s leadership could pause or even end those initiatives.

This perspective fits within the Republican opposition to CBDCs. In May 2024, the House passed the Anti-Surveillance State Act, which prohibits Federal Reserve banks from issuing digital currencies.

Meanwhile, on January 12, Senator Elizabeth Warren sent an open letter to Scott Bessent regarding the growing use of digital assets in illegal activities. What did the letter say? Read the full story.