Trump Treasury Pick Bessent Opposes Idea of U.S. Central Bank Digital Currency

U.S. senators questioning President-elect Donald Trump's nominee for Treasury Secretary, Scott Bessent, didn't spend much time on cryptocurrency issues in his nomination hearing on Thursday. But he had a chance to register strong opposition to a U.S. central bank digital currency (CBDC) and to note that he favors a modern outlook on crypto. The billionaire hedge fund manager told the Senate Finance Committee, which is set to consider confirmation of his nomination, that the Federal Reserve shouldn’t issue a digital dollar — a controversial idea that's widely seen by the crypto industry as a governmental incursion on its turf. "I see no reason for the U.S. to have a central bank digital currency," he said. "In my mind, a central bank digital currency is for countries who have no other investment alternatives." Dozens of countries around the world, notably China, have launched or piloted CBDCs . But Bessent they have generally pursued them out “out of necessity," and that the U.S. has no need. Read More: U.S. Fed Chair Powell Says 'Nowhere Near' Pursuing CBDC, Won't Spy on Americans At another point in Thursday's hearing, he was asked about the department's financial-crimes arm, and in the context of terrorist financing, he said, "I believe we have to have a 2025 approach to … digital currencies." The sentiment was immediately embraced by the crypto-backed Ceder Innovation Foundation in a social-media post, saying, "Too many politicians have been working with a 20th century outlook which not only hurts digital innovators, but also global security." Bessent, who made his fortune in hedge funds, shed hundreds of thousands of dollars in a bitcoin exchange-traded fund investment after accepting Trump's nomination, demonstrating he's had skin-in-the-game to back up his pro-crypto rhetoric. "Crypto is about freedom and the crypto economy is here to stay," he said in an interview with Fox Business in July. Read More: Trump Picks Pro-Crypto Hedge Fund Manager Scott Bessent for Treasury Secretary