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- The potential US Treasury Secretary under Donald Trump, Scott Bessent, has claimed there is \u2018no reason\u2019 for a USD central backed digital currency.<\/span><\/li>\n
- Bessent argued the US economy was strong and diverse enough to not require a CBDC.<\/span><\/li>\n
- Speaking at a Senate Finance Committee meeting, Bessent turned his attention to tax cuts \u2013 largely focussing on the proposed 2017 Tax Cuts and Jobs Act.<\/span><\/li>\n<\/ul>\n<\/div>\n
The Trump era is just days away, and the crypto community awaits eagerly to see how the regulatory landscape will shift under his leadership<\/a>.<\/p>\n
With promises of a Bitcoin<\/a> (and possibly more) Strategic Reserve for the US, among other nations, the discussion over a central bank digital currency (CBDC) has once again reared its head.<\/p>\n
In Europe, the Union\u2019s central bank has long researched the potential of a digitised Euro<\/a>.<\/p>\n
However, if Trump\u2019s Treasury Secretary pick Scott Bessent has his way, a USD CBDC<\/a> is unlikely to happen in the next term.<\/p>\n
Related: <\/strong>Italy\u2019s Largest Bank Buys $1 Million Worth of Bitcoin as Texas, Oklahoma Join List of US States Pondering Bitcoin Reserve<\/strong><\/a><\/p>\n
During a Senate Finance Committee nomination hearing, the potential Treasury Secretary claimed the United States has no need for an official virtual US Dollar.<\/p>\n
\nI see no reason for the U.S. to have a central bank digital currency\u2026in my mind, a [CBDC] is for countries who have no other investment alternative. If you hold US Dollars, you could hold very secure US assets.<\/em><\/p>\n
![](\"https:\/\/cdn.cryptonews.com.au\/2024\/11\/25124837\/Screenshot-2024-11-25-104824.png\")
Scott Bessent <\/p>\n<\/div>\nThe rationale somewhat ignores the benefits of a CBDC<\/a>, such as significantly improving cross-border transaction speeds and fees, as well as helping prevent money laundering.<\/p>\n
Despite this, Bessent is still known as a pro-crypto candidate<\/a>, having previously stated he was \u201cexcited\u201d to see how the blockchain industry flourished under Trump.<\/p>\n
\u2018The rich get richer\u2019: Bessent\u2019s Primary Focus is Installing the 2017 Tax Cuts and Jobs Act<\/h2>\n
Bessent\u2019s discussion on crypto throughout the committee hearing was very brief.<\/p>\n
Instead, he spent much of the time emphasising the importance of tax breaks for millionaires. Of particular focus was the 2017 Tax Cuts and Jobs Act.<\/p>\n
According to the Tax Policy Center<\/a>, the top 0.1% of US earners would see up to US $250k in tax cuts (AU $402k), while middle and lower-class incomes would yield significantly less in tax relief.<\/p>\n
Related: <\/strong>XRP Surges, Reaches Market Cap High as Memecoins Hit XRP Ledger<\/strong><\/a><\/p>\n
The top quintile of earners would experience the largest percentage of tax breaks (compared to current rates), or a 2\/3rds share of the total tax change.<\/p>\n
This argument was not particularly well-received by the Democrats, who accused Bessent of spending \u201chis life helping the rich get richer\u201d.<\/p>\n
- Bessent argued the US economy was strong and diverse enough to not require a CBDC.<\/span><\/li>\n