Bessent says he would not be surprised to see China working on digital assets

WASHINGTON, Feb 5 (Reuters) - U.S. Treasury Secretary Scott Bessent on Thursday said he would not be surprised if China was developing digital assets backed by something other than its own currency in order to challenge U.S. financial leadership, but U.S. officials were not sure.

"We don't know that for sure," Bessent told the Senate Banking Committee hearing, adding the U.S. had not seen evidence to confirm rumors that China was looking at alternatives to back its digital assets, including possibly gold.

"They have a very large sandbox in Hong Kong and (Hong Kong Monetary Authority) is actively traveling the world, looking at different mechanisms, so I would not be surprised," he said.