Scott Bessent, President-elect Trump’s nominee for Treasury Secretary, doesn’t believe the US needs a digital dollar. He made this clear during his Senate confirmation hearing.
No Need for a Digital Dollar, Says Bessent
Bessent argued that unlike other nations, the US has little to gain from launching a central bank digital currency (CBDC). He stated that a digital dollar is more beneficial to countries with limited investment options. He explained that many countries are exploring CBDCs out of necessity, because their citizens have few other investment choices. This isn’t the case for the US, where the dollar offers many secure investment alternatives.
The US Dollar’s Strength
Bessent highlighted the strength of the US dollar, suggesting that holders of the currency already have access to a wide range of secure US assets. He contrasted this with situations in other countries, particularly those whose citizens primarily hold the Chinese yuan, where investment choices are more limited.
No Support from Trump or the Fed
The Federal Reserve has explored the idea of a CBDC, but hasn’t made a decision to move forward. President-elect Trump himself has previously voiced his opposition to a digital dollar.
