U.S. senators questioning President-elect Donald Trump's Treasury Secretary nominee Scott Bessent on Thursday did not spend much time on the cryptocurrency issue during his nomination hearing. However, he took the opportunity to express strong opposition to US central bank digital currencies (CBDCs) and point out that he supports a modern view of cryptocurrencies.
A billionaire hedge fund manager told the Senate Finance Committee, which will consider confirming his nomination, that the Federal Reserve should not issue a digital dollar. This is a controversial idea and is widely seen in the cryptocurrency industry as a violation of government turf. .
“I see no reason for the United States to have a central bank digital currency,” he said. “In my opinion, central bank digital currencies are for countries that have no other investment options.”
Dozens of countries around the world, particularly China, have launched or piloted CBDCs. But they generally say they are forcing them out “out of necessity” and that the United States has no need to do so.
Read more: US Federal Reserve Chairman Jerome Powell says pursuing CBDC is 'out of place' and won't spy on Americans
At another point in Thursday's hearing, he was asked about the department's financial crimes unit and said in relation to terrorist financing, “I think we need to approach digital currencies in 2025.”
This opinion was quickly accepted by the Ceder Innovation Foundation, which supports cryptocurrencies, in a social media post, which said, “Too many politicians operate with a 20th century outlook, and it is not just about digital innovators, but about the world.'' It also harms national security.”
After accepting Trump's nomination, Bessent, who made his fortune in hedge funds, poured hundreds of thousands of dollars into Bitcoin exchange-traded funds (ETFs) and used personal information to back up his pro-crypto rhetoric. He showed that he was competitive.
“Cryptocurrency is about freedom, and the crypto economy is here to stay,” he said in an interview with Fox Business in July.
Read more: President Trump nominates pro-cryptocurrency hedge fund manager Scott Bessent as Treasury Secretary
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