Scott Bessent, who is president-elect Donald Trump’s nominee for Treasury Secretary, says he is against a central bank digital currency (CBDC) for the U.S.
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The billionaire hedge fund manager told the Senate Finance Committee that is considering his nomination that the U.S. Federal Reserve shouldn’t issue a digital dollar. “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.”
Bessant’s view supports the crypto industry, which considers a CBDC to be government encroachment on the digital asset space. However, dozens of countries around the world, from Canada to China, have explored the adoption of a digital currency.
Strong Greenback
Bessent said other nations are pursuing CBDCs “out of necessity,” and that the U.S. has no need given the strength of the American dollar and its role as the world’s reserve currency. Bessent has previously expressed pro-crypto views, saying in a media interview that, “Crypto is about freedom and the crypto economy is here to stay.”
He also sold hundreds of thousands of dollars in a Bitcoin (BTC) exchange-traded fund (ETF) that he owned after accepting Trump’s nomination to be U.S. Treasury Secretary. Bitcoin is currently trading at $102,000, having risen 10% so far this year.
Is BTC a Buy?
Most Wall Street firms don’t offer ratings or price targets on Bitcoin, so we’ll look at the cryptocurrency’s three-month performance instead. As one can see in the chart below, the price of BTC has risen 46% in the last 12 weeks.
