Treasury’s Bessent Warns CBDC Would Convey ‘Weakness’
U.S. Treasury Secretary Scott Bessent opposes the introduction of a central bank digital currency (CBDC) under President Trump, stating it reflects weakness rather than strength. He believes digital assets should remain in the private sector and asserts that existing U.S. assets, like Treasuries, sufficiently support foreign bank reserves without needing a CBDC. Bessent's stance aligns with ongoing conservative resistance to CBDCs, highlighted by House Majority Whip Tom Emmer's Anti-CBDC Surveillance State Act, which recently passed out of committee. Trump's executive order prohibits CBDC establishment, but experts warn that future administrations could change this stance. Over 100 countries are exploring CBDCs, with only a few having fully launched them. The urgency surrounding CBDCs has diminished due to increased criticism and concerns over privacy and security.
