China’s search for a dollar alternative is accelerating, says Bessent

Gold-backed stablecoins are one possibility — but another, less explored, option is that Beijing joins forces with the eurozone.

Treasury Secretary Scott Bessent made an intriguing comment this week that has largely flown under the radar in financial markets.

Speaking to lawmakers, Bessent said there were “lots of rumors that China may be developing digital assets backed by something other than the RMB, perhaps gold-based,” adding that U.S. officials had not yet seen firm evidence but would not be surprised if experimentation were underway, possibly using Hong Kong as a testing ground.

For a sitting Treasury Secretary to openly speculate about a major power exploring a non-sovereign or non-fiat digital currency is unusual. But the remark makes more sense when viewed in the context of a broader shift already underway: the gradual search by large economies for ways to operate at least partly outside the dollar-centric financial system.