U.S. Treasury Secretary Scott Bessent firmly rejected the idea of a central bank digital currency (CBDC) during testimony on Capitol Hill Tuesday, asserting that such a move would signal economic fragility—not financial leadership. Speaking before the House Appropriations Subcommittee on Financial Services and General Government, Bessent said digital assets should remain the domain of the private sector, not the federal government.
“My personal view is that having a central bank digital currency is a sign of weakness, not strength,” Bessent said.
He added that the U.S. financial system already offers ample tools for global exposure to the dollar—particularly through U.S. Treasuries—making a digital version unnecessary from a reserve or cross-border payment standpoint.
The remarks came in response to a question from Rep. Chuck Edwards (R-NC), a co-sponsor of the “Anti-CBDC Surveillance State Act,” which recently passed out of committee with a narrow 27–22 vote. Edwards noted growing constituent concerns over surveillance and privacy implications tied to a government-backed digital currency.
Bessent’s comments reaffirm positions he voiced during his January confirmation hearing, where he stated there was “no reason” for the U.S. to pursue a digital dollar. His stance aligns closely with the Trump administration’s broader rejection of CBDC efforts, now codified in an executive order issued earlier this year.
Trump’s CBDC Ban Isn’t Bulletproof, Say Analysts
Just days into his second term, President Donald Trump signed an executive order banning the creation and use of a central bank digital currency, citing personal freedom and financial privacy as key reasons. At a campaign rally in New Hampshire, Trump warned a CBDC could allow the government to “take your money” and track consumer behavior.
But despite its strong rhetoric, legal experts warn the executive order may be more symbolic than permanent.
“The executive order is not permanent,” said Nicholas Anthony, policy analyst at the Cato Institute.
“Things can change with the next administration… or rapidly if there’s an emergency, like a recession.”
In response, Republican lawmakers are moving to codify the ban through legislation. The most prominent effort is the Anti-CBDC Surveillance State Act, spearheaded by House Majority Whip Tom Emmer. If passed, the bill would bar the Federal Reserve from issuing or piloting a digital dollar—effectively locking out future efforts, regardless of political shifts.
Opposition to CBDCs has also become a GOP litmus test. During the primaries, Florida Governor Ron DeSantis made anti-CBDC rhetoric a central campaign theme, warning that government-backed digital money could be used to restrict purchases of gasoline, firearms, or red meat in dystopian scenarios.
For now, with both the White House and Treasury aligned in opposition, CBDC development appears stalled. But analysts stress that another financial crisis or leadership change could quickly bring the issue back to the forefront.
CBDCs vs. Stablecoins: A Question of Control
CBDCs resemble stablecoins in that both are pegged to fiat currencies like the U.S. dollar. But the core distinction lies in control: while stablecoins—such as USDT and USDC—are issued by private firms on public blockchains, CBDCs are state-issued and operate under centralized authority.
This centralization raises deep concerns around surveillance, censorship, and user autonomy. In contrast, stablecoins are often praised for programmability, cross-border accessibility, and integration within decentralized financial ecosystems.
Globally, momentum behind CBDCs continues to build. According to the Atlantic Council, more than 100 countries are researching or testing CBDCs. Only a few—Jamaica, the Bahamas, and Nigeria—have launched fully operational digital currencies. Others, including China and Russia, remain in prolonged pilot phases, highlighting both the promise and complexity of state-run digital money.
Quick Facts
- Treasury Secretary Scott Bessent called CBDCs a “sign of weakness,” reaffirming his opposition during congressional testimony.
- Bessent argued that digital innovation should be private-sector-led, not controlled by the federal government.
- His stance aligns with President Trump’s executive order banning CBDC development earlier this year.
- The Anti-CBDC Surveillance State Act continues advancing in Congress as Republicans seek to permanently block a U.S. digital dollar.
