U.S. Treasury Secretary Scott Bessent said the Trump administration will not pursue a central bank digital currency (CBDC).
This stance marks a definitive shift in federal monetary policy by removing the possibility of a government-issued digital dollar. By rejecting a CBDC, the administration signals a preference for private-sector innovation and a desire to avoid the surveillance concerns often associated with state-run digital currencies.
Bessent said these remarks during a White House press briefing in Washington, D.C., on May 28, 2024 [1]. He said the administration has taken the idea of a digital dollar off the table [2]. The Treasury Secretary used the briefing to clarify the government's position on digital assets and to outline the administration's legislative priorities.
In addition to the rejection of a CBDC, Bessent said Congress should pass the Clarity Act [2]. This crypto bill aims to establish a comprehensive regulatory framework for digital assets in the U.S. The Treasury Secretary said legislative action is necessary to provide the industry with the legal certainty required for growth and stability.
The push for the Clarity Act comes as the administration seeks to balance the promotion of the crypto industry with the need for oversight. By advocating for a specific bill, the Treasury is attempting to move the conversation from executive orders to permanent law, a move that would provide a more durable foundation for the sector.
Bessent's comments reinforce a broader political commitment to decentralized finance. The administration's approach emphasizes the role of private stablecoins, and other market-driven digital assets over a centralized government alternative [3].
“the Trump administration has taken the CBDC idea off the table”
The rejection of a CBDC combined with the push for the Clarity Act suggests a strategy of 'deregulation through legislation.' By removing the threat of a government-competitor currency and seeking a clear legal framework, the U.S. government is positioning the country as a hub for private digital asset innovation while shifting the responsibility of regulation to Congress.
