• Latest
Top Fed Official Says US Central Bank ‘Actively’ Debating Digital Dollar

Top Fed Official Says US Central Bank ‘Actively’ Debating Digital Dollar

October 16, 2019
ygg sea surpasses 10,000 scholarships in just six months of launch

YGG SEA Surpasses 10,000 Scholarships in Just Six Months of Launch

May 6, 2022
mintable launches industry changing gas free minting service on ethereum

Mintable Launches Industry Changing Gas Free Minting Service on Ethereum

May 1, 2022
5 projects enabling smart contract development on bitcoin

5 Projects Enabling Smart Contract Development on Bitcoin

April 29, 2022
bitcoin atm installed in mexico's senate building

Bitcoin ATM installed in Mexico’s Senate Building

April 27, 2022
cross chain services play a crucial role in facilitating continued adoption of defi applications

Cross-Chain Services Play a Crucial Role in Facilitating Continued Adoption of DeFi Applications

April 26, 2022
justin sun launches usdd, integrating the blockchain world and the real world with the decentralized stablecoin

Justin Sun Launches USDD, Integrating the Blockchain World and the Real World with the Decentralized Stablecoin

April 25, 2022
nfts: the next musical revolution

NFTs: The Next Musical Revolution

April 24, 2022
things you should know before investing in nfts

Things You Should Know Before Investing in NFTs

April 24, 2022
what are wrapped tokens?

What Are Wrapped Tokens?

April 23, 2022
what is the future of ethereum (eth)?

What is the future of Ethereum (ETH)?

April 22, 2022
green gaming

Everything You Need to Know About Play-to-Earn on Algorand in 2022

April 21, 2022
$ape going bananas as rumors of upcoming land sale of bayc metaverse gather momentum

$APE Going Bananas As Rumors of Upcoming Land Sale of BAYC Metaverse Gather Momentum

April 21, 2022
  • Home
  • Coin Market Cap
  • Bitcoin
  • Ethereum
  • Ripple
  • Litecoin
  • Alt Coin
  • Business
  • Trading
  • Mining
CoinNewsDaily
  • Home
  • Coin Market Cap
  • Bitcoin
  • Ethereum
  • Ripple
  • Litecoin
  • Alt Coin
  • Business
  • Trading
  • Mining
No Result
View All Result
  • Home
  • Coin Market Cap
  • Bitcoin
  • Ethereum
  • Ripple
  • Litecoin
  • Alt Coin
  • Business
  • Trading
  • Mining
No Result
View All Result
CoinNewsDaily
No Result
View All Result
Home Business

Top Fed Official Says US Central Bank ‘Actively’ Debating Digital Dollar

coinnewsdaily by coinnewsdaily
October 16, 2019
in Business
0
Top Fed Official Says US Central Bank ‘Actively’ Debating Digital Dollar
190
SHARES
1.5k
VIEWS
Share on FacebookShare on Twitter

Related articles

ygg sea surpasses 10,000 scholarships in just six months of launch

YGG SEA Surpasses 10,000 Scholarships in Just Six Months of Launch

May 6, 2022
5 projects enabling smart contract development on bitcoin

5 Projects Enabling Smart Contract Development on Bitcoin

April 29, 2022

A top Federal Reserve official said Wednesday that the U.S. central bank is “actively looking at and debating” issuance of a stablecoin, amid growing worries among some current and former regulators that the dollar might be at risk of losing its status as the world’s reserve currency.

Speaking at a local business event in Austin, Texas, Federal Reserve Bank of Dallas President Rob Kaplan said:

“We have not at the Fed decided to pursue or drive to develop a digital currency, but it’s something we’re actively looking at and debating.”

A longtime former Goldman Sachs executive with the most extensive capital-markets experience among members and alternates on the Fed’s key monetary-policy committee, Kaplan said the U.S. could suffer higher interest costs if a foreign government or another entity developed an alternative currency that received widespread adoption.

His comments came after former Commodity Futures Trading Commission Chair J. Christopher Giancarlo wrote in an op-ed piece that called for the U.S. to create a digital currency to avoid the risk that the dollar might lose its reserve status. Giancarlo now serves as an advisor to the Chamber of Digital Commerce, a trade group focused on blockchain and crypto policy.

Because of the dollar’s prominent role in international commerce and the dominant U.S. leadership position in global affairs over the past century, many foreign central banks, commercial banks and investors hold assets denominated in the American currency.

If that stopped happening due to the existence of an attractive and viable alternative, the thinking goes, then demand for U.S. assets such as Treasury bonds would shrink, in turn pushing up interest rates on the national debt, which is now approaching an unprecedented $23 trillion.

Kaplan noted that the U.S. government’s interest rates could jump by some $200 billion if a loss of the reserve-currency status sent interest rates jumping by a single percentage point, or 100 basis points in the lingo of bond traders.

In response to a question from CoinDesk, Kaplan said:

“It just reinforces, the dollar may not be the world’s reserve currency forever, and if that changes, and you tack on 100 basis points to $20 trillion, with relatively short average life, that’s a lot of money.”

“It’s $200 billion a year and all of a sudden we’ve got a tremendous problem here, so it’s something we’re watching very closely.”

Fed Chair Jerome Powell and some U.S. lawmakers warned earlier this year that Facebook’s plan to develop a digital currency, Libra, could instantly become so popular that it might displace the dollar and undermine the stability of the U.S. financial system.

Yet those concerns have faded recently as some top corporate backers of the project, including the payment networks Mastercard and Visa, have withdrawn their support.

“I noticed Libra seems to be receding at the moment,” Kaplan said. But “somebody’s going to figure out how to do this.”

Kaplan said he talks to many foreign officials in his Fed role:

“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.”

The U.S. trade war with China has weighed on the global economy, according to the International Monetary Fund, while agreements with other large trading partners, including Mexico, Canada and European countries have been upended or back on the table to be renegotiated.

The U.S. Treasury Department has also imposed stiff sanctions on regimes perceived as unfriendly or corrupt, including Iran and Venezuela.

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.”

Image via Dallas Federal Reserve 

Credit: Source link

Tags: BusinessCryptoCrypto Business
Share76Tweet48
Previous Post

French Central Banker: The World Needs to Standardize Crypto Regulations

Next Post

Price Analysis 16/10: BTC, ETH, XRP, BCH, LTC, EOS, BNB, BSV, XLM, TRX

coinnewsdaily

coinnewsdaily

CoinNewsDaily.com is an online Crypto Coin News Website that aims to provide latest trendy news from market and around the world.

Related Posts

ygg sea surpasses 10,000 scholarships in just six months of launch
Alt Coin

YGG SEA Surpasses 10,000 Scholarships in Just Six Months of Launch

May 6, 2022
5 projects enabling smart contract development on bitcoin
Alt Coin

5 Projects Enabling Smart Contract Development on Bitcoin

April 29, 2022
cross chain services play a crucial role in facilitating continued adoption of defi applications
Alt Coin

Cross-Chain Services Play a Crucial Role in Facilitating Continued Adoption of DeFi Applications

April 26, 2022
justin sun launches usdd, integrating the blockchain world and the real world with the decentralized stablecoin
Alt Coin

Justin Sun Launches USDD, Integrating the Blockchain World and the Real World with the Decentralized Stablecoin

April 25, 2022
what are wrapped tokens?
Bitcoin

What Are Wrapped Tokens?

April 23, 2022
what is the future of ethereum (eth)?
Alt Coin

What is the future of Ethereum (ETH)?

April 22, 2022
Load More
Next Post
Price Analysis 16/10: BTC, ETH, XRP, BCH, LTC, EOS, BNB, BSV, XLM, TRX

Price Analysis 16/10: BTC, ETH, XRP, BCH, LTC, EOS, BNB, BSV, XLM, TRX

Categories

  • Alt Coin
  • Bitcoin
  • Business
  • Ethereum
  • ICO
  • Litecoin
  • Mining
  • NFT
  • Ripple
  • Tech
  • Trading

What New here?

  • YGG SEA Surpasses 10,000 Scholarships in Just Six Months of Launch
  • Mintable Launches Industry Changing Gas Free Minting Service on Ethereum
  • 5 Projects Enabling Smart Contract Development on Bitcoin
  • About Us
  • Contact Us
  • Privacy & Policy

© 2018-2021 CoinNewsDaily.com by CoinNewsDaily Inc. Crafted with Love by iFtiDev

No Result
View All Result
  • Home
  • Coin Market Cap
  • Bitcoin
  • Ethereum
  • Ripple
  • Litecoin
  • Alt Coin
  • Business
  • Trading
  • Mining

© 2018-2021 CoinNewsDaily.com by CoinNewsDaily Inc. Crafted with Love by iFtiDev

  • bitcoinBitcoin(BTC)$27,686.00-0.02%
  • ethereumEthereum(ETH)$1,759.02-0.29%
  • tetherTether(USDT)$1.010.07%
  • binancecoinBNB(BNB)$325.60-0.16%
  • rippleXRP(XRP)$0.452559-0.07%
  • cardanoCardano(ADA)$0.358215-1.84%
  • dogecoinDogecoin(DOGE)$0.075011-0.99%
  • matic-networkPolygon(MATIC)$1.09-2.26%
  • solanaSolana(SOL)$20.79-0.33%
  • polkadotPolkadot(DOT)$6.00-1.44%
  • litecoinLitecoin(LTC)$94.010.65%
  • shiba-inuShiba Inu(SHIB)$0.000011-1.08%
  • tronTRON(TRX)$0.063953-0.89%
  • daiDai(DAI)$1.000.00%
  • chainlinkChainlink(LINK)$7.18-1.20%
  • cosmosCosmos Hub(ATOM)$11.23-0.76%
  • leo-tokenLEO Token(LEO)$3.40-1.54%
  • moneroMonero(XMR)$166.241.57%
  • ethereum-classicEthereum Classic(ETC)$20.21-1.79%
  • okbOKB(OKB)$41.50-1.93%
  • stellarStellar(XLM)$0.0922181.11%
  • bitcoin-cashBitcoin Cash(BCH)$125.47-0.89%
  • filecoinFilecoin(FIL)$5.51-1.33%
  • crypto-com-chainCronos(CRO)$0.0692420.32%
  • vechainVeChain(VET)$0.022940-1.21%
  • algorandAlgorand(ALGO)$0.209984-0.84%
  • internet-computerInternet Computer(ICP)$4.94-0.42%
  • eosEOS(EOS)$1.13-3.35%
  • elrond-erd-2MultiversX(EGLD)$42.56-0.68%
  • tezosTezos(XTZ)$1.13-0.58%
  • aaveAave(AAVE)$71.66-2.25%
  • theta-tokenTheta Network(THETA)$1.01-0.96%
  • neoNEO(NEO)$12.05-0.74%
  • paxos-standardPax Dollar(USDP)$1.010.05%
  • havvenSynthetix Network(SNX)$2.43-3.71%
  • bitcoin-cash-svBitcoin SV(BSV)$36.58-0.70%
  • pancakeswap-tokenPancakeSwap(CAKE)$3.730.13%
  • dashDash(DASH)$59.06-3.60%
  • makerMaker(MKR)$669.76-0.93%
  • huobi-tokenHuobi(HT)$3.670.56%
  • iotaIOTA(MIOTA)$0.209459-0.99%
  • zilliqaZilliqa(ZIL)$0.027292-0.50%
  • zcashZcash(ZEC)$35.87-1.03%
  • basic-attention-tokenBasic Attention(BAT)$0.242324-0.63%
  • nemNEM(XEM)$0.038995-1.22%
  • Elrond ERDElrond ERD(ERD)$0.0259290.00%
  • qtumQtum(QTUM)$3.09-2.06%
  • kusamaKusama(KSM)$33.17-1.41%
  • compound-governance-tokenCompound(COMP)$42.671.19%
  • bitcoin-goldBitcoin Gold(BTG)$16.37-1.72%
  • yearn-financeyearn.finance(YFI)$8,361.420.53%
  • omisegoOMG Network(OMG)$1.82-5.22%
  • ftx-tokenFTX(FTT)$1.89-21.50%
  • golemGolem(GLM)$0.240064-0.19%
  • wavesWaves(WAVES)$2.150.23%
  • sushiSushi(SUSHI)$1.040.37%
  • ontologyOntology(ONT)$0.226232-0.55%
  • digibyteDigiByte(DGB)$0.0096240.70%
  • umaUMA(UMA)$2.030.19%
  • ethlendAave [OLD](LEND)$0.53-3.08%
  • UniswapUniswap(UNI)$2.4438.80%