In a Senate hearing, Scott Bessent, who is expected to become the U.S. Treasury Secretary under President-elect Donald Trump, presented his views on financial matters.
At a hearing of the US Senate Committee on Finance held on January 16th, Bessent addressed queries from Senator Marsha Blackburn (Republican, Tennessee) concerning the prospect of a United States central bank digital currency (CBDC). Specifically, she questioned how Bessent would handle the possibility of a digital dollar if he were to be officially appointed and confirmed by the Senate. This inquiry was prompted by Chinese officials presenting a digital yuan to foreign attendees during the 2022 Olympics.
As a crypto investor, I find myself questioning the need for the U.S. to adopt a central bank digital currency (CBDC). To me, CBDCs seem more essential for countries with limited investment options. Many nations are turning to CBDCs out of necessity, while the U.S., with its diverse array of secure assets backed by US dollars, doesn’t face such constraints.
The hearing observed that Bessent’s line of questioning was predicated on his presumed nomination by Trump as the future Treasury secretary, since Trump’s inauguration is not until January 20th.
Previously a partner at Soros Fund Management and a campaign contributor to Trump, Bessent allegedly made multiple statements indicating his approval of the U.S. government’s efforts to foster cryptocurrency growth.
Changing administrations, changing positions on CBDCs?
As a crypto investor in 2022, I’ve been closely watching the news about President Joe Biden’s executive order directing the Treasury Department to explore the possibility of creating a Central Bank Digital Currency (CBDC). While this move could be beneficial for financial inclusion among Americans, some Republican lawmakers have raised concerns. They argue that a digital dollar might jeopardize financial privacy and potentially pose threats to our national security.
During his presidency, Trump expressed that under his term, there would be no Central Bank Digital Currency (CBDC) for the crypto sector.
As a crypto investor in May, I found myself keeping a close eye on the political landscape as the Republican-dominated House of Representatives passed the CBDC Anti-Surveillance State Act. This act, largely along party lines, aims to prevent Federal Reserve banks from both directly and indirectly issuing Central Bank Digital Currencies (CBDCs). Essentially, this means that my investments in digital assets might not be affected by the direct intervention of the Federal Reserve, offering a degree of financial autonomy.
In June 2024, the Senate Banking Committee got a bill from the House. Whether or not the Senate will review this legislation again after the Republicans took over the chamber in January 2025 is uncertain.
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2025-01-16 23:23