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Highlights
- Scott Bessent stated during a hearing before the house that he will oppose the Fed issuing a CBDC.
- The US Treasury Secretary called it a sign of weakness, as he claimed that digital assets belong in the private sector.
- Bessent and the Treasury department are meant to release a report on the proposed Strategic Bitcoin Reserve.
US Treasury Secretary Scott Bessent has again opposed the idea of a Central Bank Digital Currency (CBDC). He stated that he would not favor a move by the Federal Reserve to create one, calling it a sign of weakness.
Scott Bessent Opposes The Fed Creating A CBDC
While testifying before the House appropriations subcommittee, the US Treasury Secretary spoke against the idea of the Fed creating a digital currency. He called it a sign of weakness, noting that digital assets belong in the private sector.
This isn’t the first time that Scott Bessent has spoken against creating a CBDC. During his nomination hearing, he remarked that digital currencies are for countries with no other investment alternatives. The US Secretary also noted that countries like China have considered creating one, but there was no need for the US to create one.
US President Donald Trump has also shown that he doesn’t support the Fed creating a CBDC. Following his inauguration in January, the President signed an executive order prohibiting agencies from working towards establishing and issuing central bank digital currencies.
So far, Jerome Powell and the Fed have shown no indication of creating a CBDC, which Scott Bessent opposes. Instead, the Fed Chair has only called for stablecoin regulations to manage these cryptocurrencies as their use cases increase.
As Coingape reported, the US Senate will likely vote on the stablecoin bill before May 26. If passed, it would become the first major crypto regulation in the US. The US House is still deliberating on its version of the stablecoin legislation at the committee level, with key members like Rep Maxine Waters objecting to the bill.
Meanwhile, the crypto community is still waiting for Scott Bessent and the US Treasury to release their report on the proposed US Strategic Bitcoin Reserve. The Treasury is meant to outline a comprehensive plan for managing this reserve using the seized assets.
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