Matthew Bessent advocates for cryptocurrency to strengthen U.S. dollar dominance

Treasury official Matthew Bessent told a congressional hearing on June 12 that the United States should treat cryptocurrency as a strategic tool to preserve the global dominance of the U.S. dollar. He said the government will explore ways to integrate digital assets into the existing financial system and to use them to counter rival currencies that threaten America’s monetary leadership. The remarks were made at the House Financial Services Committee in Washington, D.C., after a surge in stable‑coin usage and growing interest in central‑bank digital currencies abroad.

The warning comes as the dollar’s share of global payments has slipped from about 85 percent in 2016 to roughly 70 percent today. China’s digital yuan pilot and the European Union’s plans for a digital euro have heightened concerns that other nations could erode the dollar’s network effects. At the same time, private‑sector crypto platforms have attracted billions of dollars in deposits, offering faster cross‑border transfers at lower cost than traditional banks. Policymakers fear that without a coordinated response, the United States could lose its edge in international finance.

Bessent outlined three steps the Treasury will take. First, the department will work with the Federal Reserve to develop a U.S. central‑bank digital currency that can be used for wholesale settlements. Second, it will create a clear regulatory framework for stable‑coins, focusing on consumer protection and anti‑money‑laundering rules. Third, the Treasury will partner with private firms to build infrastructure that makes digital dollars interoperable with existing payment networks. Lawmakers from both parties praised the approach, while some industry groups warned that heavy regulation could stifle innovation. Critics also noted the risk of a government‑issued digital token competing with privately issued crypto.

The Treasury plans to release a detailed policy paper by the end of the year and to launch a pilot program for a digital dollar in partnership with selected banks and fintech firms. If the proposals move forward, they could reshape how global trade is settled and reinforce the dollar’s status as the world’s reserve currency. The next steps will be closely watched by foreign regulators, investors, and anyone who uses digital money for everyday transactions.