U.S. Treasury Opposes Central Bank Digital Currency: Market Impact and Potential Shifts

Scott Bessent, the U.S. Treasury Secretary, publicly opposed the implementation of a central bank digital currency (CBDC) on May 6, 2025. This statement could have significant repercussions for financial markets and policy directions in the coming years. His views against a potential Federal Reserve-issued CBDC are notable as he previously held roles within economic strategies, indicating a preference for market-driven solutions. Bessent’s opposition may lead to increased confidence in Bitcoin and other decentralized cryptocurrencies like Ethereum due to concerns over competition with a U.S.-backed digital dollar.