Treasury Secretary Scott Bessent on 29 May declared that the Trump administration will not pursue a US central bank digital currency (CBDC), citing risks of government surveillance over private financial transactions. The announcement, made at a White House briefing, positions the United States firmly among nations sceptical of state-issued digital money even as central banks elsewhere continue to pilot their own versions.

The Administration's Position

Bessent was unambiguous in his remarks to reporters. 'This administration has been very clear there will be no central bank digital currency,' he said. He argued that a government-issued digital dollar would represent the first step toward state monitoring of personal finances. 'I think that would be the first step toward tracking,' he added, framing a CBDC as a direct threat to individual financial freedom.

The Alternative: Stablecoins and Private Digital Assets

Rather than backing a digital dollar, the administration is pushing a regulatory framework that encourages private-sector digital assets and stablecoins under US oversight. Bessent pointed to recent legislative progress as evidence of momentum. 'We've passed stablecoin legislation with bipartisan support, and the CLARITY Act is now up on the Hill, and I think it has bipartisan support,' he said. The strategy marks a clear pivot: instead of the state issuing digital currency, Washington wants to be the regulatory home for privately issued digital assets.

Bringing Offshore Activity Onshore

Bessent was pointed in his criticism of poorly regulated offshore digital asset markets. 'When you look at digital assets, all the nonsense that happens, all the things you read about, that's because it's the wild, wild west offshore,' he said. 'So, we've got to bring it onshore.' He argued that subjecting the industry to US regulation and best practices would deliver stronger consumer protections than allowing growth outside American jurisdiction. 'The most important thing we can do is to make digital assets come into the United States, make the US the home,' he said.

Call for Congressional Action

Responding to a question at the briefing, Bessent urged Congress to advance legislation that establishes a clearer regulatory framework for digital assets. He argued that regulatory certainty would simultaneously spur innovation and strengthen consumer safeguards — a dual mandate the administration believes a CBDC cannot fulfil. The CLARITY Act, currently before lawmakers, is cited as a key vehicle for that framework.

Global Context

The US rejection of a CBDC comes as dozens of central banks — including those in China, the European Union, and India — are at various stages of exploring or testing government-issued digital currencies. The Federal Reserve had previously conducted exploratory research on a digital dollar, but that work has effectively been shelved under the current administration. The US stance could influence other jurisdictions weighing the balance between state-issued and privately issued digital money, particularly given the dollar's reserve currency status.