U.S. Treasury Secretary Scott Bessent stated that cryptocurrency does not pose a threat to the dollar due to its established trust globally.
Dollar and Its Stability
Scott Bessent emphasized that the trust built over centuries protects the dollar from the volatility of digital assets. The dollar remains the world's primary reserve currency, and its role in international trade is highly stable.
Regulating Cryptocurrency and Trust
Bessent also noted that thoughtful regulation could support the crypto market and enhance trust in the dollar. He pointed to regulators' efforts to combat fraud and improve transparency, which could reduce risks and encourage innovation.
The Future of Digital Currencies
Bessent discussed central bank digital currencies (CBDCs) and clarified that while a digital dollar is being explored, it will not replace the physical dollar anytime soon; it would be a complement rather than a threat. He reaffirmed that as long as the U.S. maintains stable monetary policy and regulatory clarity, crypto is not a threat to the dollar's global role.
Scott Bessent reassured that the dollar will continue to be a major player in the global financial market, despite the rise of cryptocurrencies.
