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US Treasury secretary nominee sees “no reason” for CBDC

  • Scott Bessent believes a CBDC is only for countries that have no other investment alternatives
  • He adds that many countries are only issuing CBDCs “out of necessity”

Scott Bessent, President-elect Donald Trump’s pick for US Treasury Secretary, has said he sees “no reason” for the US to have a central bank digital currency (CBDC).

Bessent was speaking during his nomination hearing in front of the Senate Finance Committee on January 16. The hedge fund manager was responding to questions from Republican Senator Marsha Blackburn about how he would approach discussions regarding a US CBDC.

Answering, Bessent said: “I see no reason for the US to have a central bank digital currency. In my mind, a central bank digital currency is for countries that have no other investment alternatives,” adding that “many of these countries are doing it out of necessity, whereas the US, if you hold US dollars, you can hold a variety of very secure assets.”

Exploring CBDCs

Many countries are already exploring the potential of CBDCs. For instance, in 2022, Brazil’s central bank announced it was launching its CBDC, Drex at the end of 2024.

In August 2023, Russia rolled out the first CBDC pilot, involving 13 banks. A report, at the time, noted that the country’s CBDC would begin to be operational in 2025.

To date, only three countries have launched CBDCs: the Bahamas, Jamaica, and Nigeria.

The US, however, has been hesitant to issue its digital currency. Yet, even though research has gone into the viability of one in the US, Jerome Powell, chair of the US Federal Reserve, stated in 2021 that the department wasn’t planning on launching a CBDC anytime soon.

Powell added that it would be “years rather than months” for the US to develop a digital currency and that they would look at it “very, very carefully.”

Despite this, President Biden signed an executive order, in 2022, actively calling for policies on Bitcoin and other cryptocurrencies, and urgent action in researching and developing a CBDC in the US.

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SEC legt Berufung ein: XRP in Gefahr?

Die US-Börsenaufsichtsbehörde SEC hat offiziell Berufung gegen das Urteil vom Juli 2023 eingelegt, das Ripple Labs teilweise entlastet hatte. Im Fokus der Berufung steht die Frage, ob XRP auch bei Verkäufen an Privatanleger als Wertpapier einzustufen ist.

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Switzerland’s PostFinance AG bank introduces Ethereum staking

  • PostFinance AG launches Ethereum staking, expanding its crypto service offerings.
  • The move aligns with rising global crypto adoption and Switzerland’s crypto-friendly stance.
  • The US political shift under Trump is expected to boost crypto market stability and growth.

In a pioneering move that underscores the growing integration of cryptocurrencies into traditional banking, Switzerland’s state-owned PostFinance AG has launched Ethereum staking services.

This move comes at a time when the global financial landscape is witnessing a significant embrace of digital assets, particularly with expectations of a transformative year for cryptocurrencies in 2025.

PostFinance AG’s forays into crypto

PostFinance AG, already known for its progressive steps in the crypto sector, has taken its commitment a step further by allowing its clients to stake Ethereum, thereby participating in the validation of transactions on the Ethereum blockchain and earning additional tokens.

The Ethereum staking initiative reflects the bank’s strategy to expand its cryptocurrency services, building on its introduction of crypto trading and custody services in the previous year.

By offering staking, PostFinance is not only catering to the growing demand from investors looking for passive income through digital assets but is also setting a precedent for how traditional banking can coexist with the decentralized ethos of blockchain technology.

Leveraging the political shift in the US

This move by PostFinance is particularly timely. With the recent political shifts in the United States, where President-elect Donald Trump is set to begin his second nonconsecutive term, there’s a palpable optimism around regulatory changes that could further legitimize and stabilize the crypto market.

Trump, heralded as the first truly pro-crypto president, is expected to influence a more favourable environment for digital currencies, both domestically and internationally.

Moreover, the enthusiasm for cryptocurrencies within Switzerland itself seems to be on an upward trajectory. This is evidenced by recent proposals suggesting that the Swiss National Bank should consider purchasing and holding Bitcoin as part of its strategic reserves.

Such a policy, if implemented, would mark another significant milestone in the acceptance of cryptocurrencies by state institutions, potentially catalyzing further adoption across Europe.

The introduction of staking by PostFinance AG is also a clear indicator of the bank’s vision for the future of finance. By integrating blockchain technology into its operations, PostFinance is not only providing its customers with new investment opportunities but is also preparing for a future where digital assets might play a more central role in the global economy.

The bank’s announcement also hinted at plans to introduce staking for other tokens soon, suggesting a broader strategy to solidify its position in the crypto space.

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