Dallas Federal Reserve Bank President Rob Kaplan said the Central Bank is “actively considering and discussing” the issue of its own digital currency.
The initiative was launched amid growing concerns among regulators that the US dollar could lose its status as a global reserve currency. Speaking at a business event in Austin, Kaplan said:
“The final decision on the issue of digital currency has not yet been made, but we are actively considering and discussing this.”
According to him, the United States may face higher costs at interest rates if a foreign government or other organization develops an alternative currency that will become widespread. Kaplan noted that spending could rise by about $ 200 billion if loss of reserve currency status triggers a jump in interest rates by one point.
“This only confirms that the dollar cannot always be the world’s reserve currency. $ 200 billion is a lot of money that can bring big problems. Therefore, we are very closely monitoring the situation, ”he said.
Earlier this year, Fed Chairman Jerome Powell and U.S. lawmakers warned that Facebook’s Libra project could instantly become so popular that cryptocurrencies would crowd out the dollar and undermine the stability of the U.S. financial system.
Recently, however, these concerns have become less common, as some large companies, including Mastercard and Visa payment networks, have left the project. In conclusion, Kaplan noted:
“I still think that in the foreseeable future the dollar will be the world’s reserve currency. We will be able to refinance our debt at relatively low rates, but I don’t think we should take it for granted. ”
Recall that earlier this month, two congressmen appealed to the chairman of the US Federal Reserve with a request to consider the possibility of creating a digital version of the national currency.
In addition, Christopher Giancarlo, former chairman of the Commodity Futures Trading Commission (CFTC), believes the US government should start developing its own digital dollar, independent of central banks.