Scott Bessent’s View on CBDCs
- Scott Bessent believes a CBDC is only for countries that have no other investment alternatives
- He adds that many countries are only issuing CBDCs “out of necessity”
During his nomination hearing in front of the Senate Finance Committee on January 16, Scott Bessent, President-elect Donald Trump’s pick for US Treasury Secretary, stated that he sees “no reason” for the US to have a central bank digital currency (CBDC).
US Stance on CBDCs
Despite the growing interest in CBDCs globally, the US has been hesitant to issue its digital currency. In 2021, Jerome Powell, chair of the US Federal Reserve, mentioned that the department wasn’t planning on launching a CBDC anytime soon.
Global CBDC Initiatives
Many countries are already exploring the potential of CBDCs. Brazil’s central bank announced the launch of its CBDC, Drex, by the end of 2024. Russia conducted the first CBDC pilot in August 2023, involving 13 banks, with plans for operational implementation by 2025. Currently, only three countries have successfully launched CBDCs: the Bahamas, Jamaica, and Nigeria.
US Government’s Stance
President Biden signed an executive order in 2022, emphasizing the need for policies on Bitcoin and other cryptocurrencies, as well as urging research and development of a CBDC in the US. While the US continues to evaluate the feasibility of a digital currency, the timeline for its development remains uncertain.