Digital Dollar – According to one of its top officials, the U.S. Federal Reserve is looking into the issuance of a digital currency. This follows FEAR of the potential impact of cryptocurrencies and the looming Facebook’s Libra.
President of the Federal Reserve Bank of Dallas, Rob Kaplan, speaking at a business event in Austin, Texas, said the Fed had not yet decided to pursue or develop a digital currency, but it was “actively looking at and debating” the issue.
There are growing concerns that central bank issued digital currencies (CBDC), or corporate issued tokens like the proposed Libra cryptocurrency could become widely adopted and threaten the US dollar’s stand as the global reserve currency. This has led to the thought of a Digital Dollar.
According to Coindesk, Kaplan said:
I still think for the foreseeable future, the dollar will be the world reserve currency, we’re able to refinance our debt at relatively low rates, but I don’t think we should take that for granted. People around the world are working real hard to try to find alternatives to dollars and dollar infrastructure because the more they’re invested in that, the more susceptible they are to sanctions, tariffs and what’s going on right now.