President Donald Trump’s administration has declared its stance on the creation of a U.S. central bank digital currency (CBDC). Treasury Secretary Scott Bessent formally ruled out such a move amid growing debate over financial surveillance, cryptocurrency regulation, and the future of digital payments in America.
Speaking to reporters on Thursday, May 28, Secretary Bessent declared that the idea of a government-backed “digital dollar” has been taken “off the table”.
He said the administration views a CBDC as a potential gateway to government monitoring of citizens’ financial activities, distancing the White House from proposals that the Federal Reserve and policymakers in Washington have explored for years.
“This administration has been very clear there will be no central bank digital currency, which I think would be the first step toward tracking,” Bessent said. “So we have taken that off the table.”
Bessent confirms no CBDC under Trump admin
The Treasury Secretary made the remarks in response to a question about Americans’ concerns that future digital payment systems could be used to monitor spending habits or limit financial freedom.
Bessent instead promoted the administration’s broader push to regulate privately issued digital assets and stablecoins through legislation currently moving through Congress.
“We passed stablecoin legislation, which is bipartisan. And the CLARITY Act is now up on the Hill,” he said. “I think it has bipartisan support.”
“The most important thing we can do is to make digital assets come into the United States, make the U.S. the home. Our regulation, our best practices are what will ensure good standards for these,” he added.
Also Read: Senate Advances Landmark Clarity Act in 15-9 Bipartisan Vote, Delivering Major Crypto Regulatory Win
Bessent further argued that many of the scandals and collapses associated with cryptocurrencies have occurred largely outside U.S. regulatory oversight.
“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, so we’ve got to bring it onshore,” he said. “So I would encourage the House and the Senate to get CLARITY done.”
The Federal Reserve has repeatedly emphasized that it has made no formal decision to launch a digital dollar. However, it has spent years researching the concept through various pilot initiatives and discussion papers.
In February 2026, the Fed said it had been exploring “the potential benefits and risks of CBDCs from a variety of angles,” adding that its key focus was whether a CBDC could improve an “already safe and efficient” U.S. payment system.
The central bank also noted that any potential CBDC would require support from both Congress and the executive branch before implementation.
Debate over a digital dollar intensified after President Trump returned to office and signed Executive Order 14178 in January 2025, directing federal agencies to halt any initiatives to establish or promote a U.S. CBDC.
The order stated that agencies were prohibited from “undertaking any action to establish, issue, or promote a CBDC” and instructed departments to terminate any related plans already underway.
Why it matters
Secretary Bessent’s comments represent one of the clearest and strongest anti-CBDC positions yet from the Trump administration and come amid an intensifying global race over digital currencies and financial technology.
A CBDC is essentially a digital version of sovereign currency issued and backed directly by a central bank.
Unlike cryptocurrencies such as Bitcoin, which operate independently of governments, a CBDC would function as an official liability of the Federal Reserve and could, in theory, enable direct digital transactions between consumers and the central bank.
Also Read: Trump’s Plan to Commemorate His Gold Coin Sparks Outrage as He is accused of Breaking The Law
Supporters of CBDCs have argued that they could modernize payment systems, allow instant money transfers, improve access to banking services and strengthen America’s competitiveness against rivals such as China, which has aggressively expanded testing of its digital yuan project.
According to Congressional Research Service data released earlier this year, more than 100 jurisdictions worldwide are currently researching, piloting or launching some form of CBDC.
China’s e-CNY project is considered among the most advanced globally, with billions of digital wallet transactions reportedly already processed through pilot programs.
Countries including the Bahamas, Jamaica and Nigeria have already launched operational CBDCs, while the European Central Bank and the Bank of England continue to develop digital euro and digital pound initiatives.
However, critics in the United States — particularly conservatives and privacy advocates — have increasingly warned that a digital dollar could hand governments unprecedented oversight over private financial behavior.
Opponents argue that if designed improperly, a CBDC could potentially allow authorities to track purchases, freeze transactions or restrict access to funds.
Federal Reserve Governor Christopher Waller previously described CBDCs as “a solution in search of a problem,” arguing that America’s existing banking and payment systems already perform efficiently without the need for a government-controlled digital currency.
Instead of pursuing a CBDC, the Trump administration appears to be positioning stablecoins and regulated private-sector digital assets as the preferred path for expanding digital finance innovation in the United States.
The administration has also thrown its support behind the proposed CLARITY Act, legislation designed to establish clearer rules for digital assets and define regulatory responsibilities between U.S. financial agencies.
Follow our WhatsApp Channel and X Account for real-time news updates.
