Treasury Chief Flags Hong Kong As China’s Gateway To Digital Assets

The U.S. Treasury Secretary Scott Bessent warned lawmakers that China could be exploring ways to challenge America’s dominance in digital assets, using Hong Kong as a testing ground.

Testifying before the Senate Banking Committee, Bessent said he would not be surprised if Beijing is already experimenting with digital assets, possibly backed by commodities such as gold, though no confirmation exists.

Bessent pointed to Hong Kong’s expanding regulatory sandbox and the global outreach of the Hong Kong Monetary Authority as signs of strategic intent.

Treasury Secretary Scott Bessent addresses rumors that China is building digital assets to challenge the American financial system: pic.twitter.com/WsqyBjt77A

— CoinDesk (@CoinDesk) February 5, 2026

While cryptocurrency activity remains banned on mainland China, Hong Kong has introduced licensing regimes and approved crypto-linked exchange traded funds.

The comments align with President Donald Trump’s push to make the United States the world’s leading crypto hub.

Bessent urged Congress to pass the Digital Asset Market Clarity Act, despite industry criticism from firms including Coinbase, arguing clear rules are essential to maintaining U.S. financial leadership.

He ruled out a U.S. central bank digital currency, backing private sector stablecoins instead.

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