U.S. Treasury Secretary Scott Bescent confirmed Tuesday that he was not in favor of the central bank’s digital currency (CBDC) debut under President Donald Trump’s administration, and threw shade on the digital dollar’s concept during Congress testimony.
“I believe digital assets belong to the private sector, and my personal view is that having a central bank digital currency is a sign of weakness, not strength,” he said before a subcommittee of the House Approximately Expenditure Committee on Financial Services and the General Government.
Federal Reserve Chairman Jerome Powell confirmed in February that the central bank would not be issuing digital fiat currency, but conservatives like House majority Whip Tom Emmer have long been opposed to the creation of CBDCs in the United States. That was the case last month his anti-CBDC surveillance national law. I fainted of the committee of 27-22 votes.
On Tuesday, Emmer’s Bill co-sponsor, Rep. Chuck Edwards (R-NC), asked Bessent to take on the CBDC. Many Edwards members are concerned about the security and privacy of such currencies, lawmakers added.
Assets like the US Treasury already provide ample exposure to greenbacks, and it appears that they are saying that CBDCs are not needed in the US in terms of managing foreign bank reserves.
“If a reserve manager or a foreign central bank holds US dollars, there are a wide variety of US assets that can be invested in,” he continued. “We create a central bank digital currency just for ease of use, as there is no suitable option for the underlying asset.”
Bescent’s comments on Tuesday mirrored the testimony of Congress in January. Before he confirmed, Bescent I said He believes that the US has “no reason” to issue digital dollars.
Trump after he took office signature The executive order “banning facilities, publication, distribution and the use of CBDCs” within the United States fulfills the promise of a campaign they made last year. The CBDC would allow the government to “take your money away,” he warned at a New Hampshire rally.
There are no concerns that Trump’s orders will not cause much concern about the launch of the CBDC, but bills from Congress like Emmers will be more permanent, said Nicholas Anthony, a policy analyst at the Cato Institute, a libertarian think tank. Decryption.
“The executive order is not permanent, so things could change in the next administration,” he said. “If an emergency occurs, like a recession, things can change rapidly (and) and policymakers start to reach the depths of the toolbox.”
When he got a job with the Republican presidential nomination, Florida Gov. Ron DeSantis was one of the hopes who were perplexed by the CBDC on the campaign trail. Conservatives I warned This technology can be used to limit the purchase of consumer goods such as lean meat and gasoline.
CBDCs are similar to stubcoins as tokens nailed to the prices of Fiat currencies such as the US dollar. But rather than being issued by private companies on public blockchains, they are maintained and managed by the government.
Today, over 100 countries around the world research, develop or pilot CBDCs. Atlantic Council. As China and Russia continue their long-standing pilot programmes, only Jamaica, the Bahamas and Nigeria have launched their entire CBDC.
During the Biden administration issued The 2022 executive order directed the US government to investigate what technology infrastructure is needed for the CBDC. The issue was relatively imminent compared to today, Anthony said. However, CBDC remains a threat, he added.
“Parliamentary members wanted CBDCs left and right, but those who wanted it were open to the public,” he said. “We’re at a time when it’s facing a lot of deserved criticism. It really puts it on the backburner in many ways.”
Edited by James Rubin
