In what could be interpreted as another optimistic signal for cryptocurrencies, Scott Bessent, President-elect Donald Trump’s nominee for Treasury Secretary, argued against the concept of a central bank digital currency in the U.S. on Thursday.
What Happened: Bessent was taking questions from members of the Senate Finance Committee for confirmation to the Treasury Department.
“I see no reason for the U.S. to have a central bank digital currency,” Bessent said, in response to a question by Sen. Marsha Blackburn (R-TN). “In my mind, a central bank digital currency is for countries who have no other investment alternatives.”
The hedge fund veteran believed that the nations that have undertaken such initiatives were doing so “out of necessity” and that the U.S. does not have a similar need.
“If you hold U.S. dollars, you could hold a variety of very secure U.S. assets, ” Bessent added.
See Also: Italy’s Largest Bank Leaps Into Bitcoin Trading With $1 Million ‘Test’ Investment But CEO Says He Doesn’t Invest In BTC Personally
Why It Matters: CBDCs have been a subject of debate, with many in the cryptocurrency industry seeing it as a government interference in personal financial liberty.
As the name suggests, CBDC is a digital version of a country’s fiat currency, controlled by the central bank, whose blockchain network can only be viewed and engaged with by a select group of financial institutions.
According to the CBDC Tracker, well over 50 countries have been involved in research or conducting pilots to use CBDCs, including BRICS powers like Russia, China, and India.
The Federal Reserve has also been exploring the potential benefits and risks of such government-controlled currencies but has yet to come up with a concrete plan.
Interestingly, Bessent is known to be personally invested in Bitcoin (CRYPTO: BTC). He disclosed owning between $250,001 and $500,000 in the iShares Bitcoin Trust ETF (NASDAQ:IBIT).
Image via Wikimedia Commons
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