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The president-elect cannot officially nominate anyone until after he is inaugurated on Jan. 20, but the US Senate has been holding hearings to question his potential picks.
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Scott Bessent, US President-elect Donald Trump’s anticipated pick for the country’s Treasury secretary, faced Senators in a hearing to explain his positions on financial issues.
In a Jan. 16 hearing of the US Senate Committee on Finance, Bessent responded to questions from Republican Senator Marsha Blackburn regarding a US central bank digital currency (CBDC).
The Tennessee lawmaker brought up Chinese officials introducing a digital yuan to foreign attendees at the 2022 Olympics and asked how Bessent could handle a potential digital dollar if officially nominated and confirmed in the Senate.
“I see no reason for the US to have a central bank digital currency,” said Bessent. “In my mind, a central bank digital currency is for countries who have no other investment alternatives. […] Many of these countries are doing it out of necessity, whereas the US — if you hold US dollars, you can hold a variety of very secure US assets.”
Scott Bessent speaking before US lawmakers on Jan. 16. Source: US Senate Committee on Finance
The hearing noted that Bessent’s questioning was based on his “anticipated” nomination by Trump to be the next Treasury secretary, as the president-elect is not scheduled to be inaugurated until Jan. 20.
A former partner at the hedge firm Soros Fund Management and a donor to Trump’s campaign, Bessent reportedly made several statements suggesting he supported the US government’s efforts to promote crypto.
Changing administrations, changing positions on CBDCs?
In 2022, US President Joe Biden issued an executive order directing the Treasury Department to research the development of a potential CBDC. Though the initiative could help with financial inclusion for Americans, many Republican lawmakers have criticized a digital dollar as potentially compromising financial privacy and national security.
As a presidential candidate, Trump promised the crypto industry there would “never be a CBDC” while he was in office.
Related: Senator Warren urges Trump’s Treasury pick to consider stricter crypto regs
In May, the Republican-controlled House of Representatives passed the CBDC Anti-Surveillance State Act largely along party lines. The legislation would prohibit Federal Reserve banks from issuing CBDCs directly or indirectly.
The Senate Banking Committee received the bill from the House in June 2024. It’s unclear if or when the Senate will revisit the legislation following Republicans taking control of the chamber in January.
Magazine: How crypto laws are changing across the world in 2025
This article first appeared at Cointelegraph.com News
