The US Federal Reserve is exploring the possibility of issuing a digital dollar, CoinDesk reports making reference to statements by Rob Kaplan, president of the Federal Reserve Bank of Dallas.
According to Kaplan, if the government of another country or company issues a digital currency, the dollar may lose its status as a global reserve currency.
In addition, Kaplan thinks that the emergence of an alternative to the dollar will reduce demand for US government bonds, whose interest rate might eventually increase to $200B a year if interest rates jump by 100 basis points (1%).
The president of the Dallas Fed has highlighted that the countries affected by US sanctions and those which face higher tariffs on trade are leading the development of digital currencies.
The president of the US Commodity Futures Trading Commission (CFTC), Christopher Giancarlo, said yesterday the dollar may lose its dominant position if other countries begin to launch national digital currencies, which is the reason why the US should consider issuing a digital dollar.