The U.S. central bank is actively debating issuance of a digital dollar, Federal Reserve Bank of Dallas President Rob Kaplan said at business event in Austin, Texas.
“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,” he said.
Kaplan believes that the U.S. could suffer a great loss if a widespread adopted cryptocurrency will be developed by a foreign government or commercial company.
Moreover, Kaplan highlighted that the global stablecoin will reduce demand for US government bonds, which will lead to an increase in interest rates by 100 basis points (1%) and increase the cost of servicing government debt by $ 200 billion per year.
Earlier this year, some U.S. lawmakers warned that Facebook’s Libra might replace the dollar and jeopardize the stability of the U.S. financial system. But those concerns have faded as key memberships of the Libra Association withdrawn from it.
As previously reported, Visa, MasterCard, eBay, Stripe, Mercado Pago announced on October 11 they will no longer be part of Facebook’s libra cryptocurrency project. Lack of support from key payment systems can have serious consequences for the Facebook crypto project. Their withdrawal clouds the Libra’s future and calls into question its success.