US Federal Reserve to Consider Digital USD Issue

If a some country or company issues digital money that is widely recognized, this could lead to the loss its status by the USD, fed official believes
17 October 2019   154

The US Federal Reserve is actively considering the possibility of issuing digital currency, fearing the dollar will lose its leading position in the global financial system. This was stated by President of the Federal Reserve Bank of Dallas Rob Kaplan, reports CoinDesk.

In his opinion, if a foreign government or company issues digital money that is widely recognized, this could lead to the loss of the status of the world's reserve currency by the dollar.

On the eve of the previous chairman of the Commodity Futures Trading Commission (CFTC), Christopher Giancarlo also expressed concern that the re-issuance by other countries of national currencies in digital form could lead to the dollar losing its dominant role in the world. He called for the release of a digital dollar on the blockchain.

Bank of England Governor Mark Carney said earlier that a digital currency like Facebook’s Libra can replace the dollar as a global reserve currency.

The emergence of an attractive and viable alternative to the dollar will reduce demand for US government securities, Kaplan said. This will lead to an increase in interest rates by 100 basis points (1%), which will increase the cost of servicing public debt by $ 200 billion per year.

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.
 

Rob Kaplan

President, Federal Reserve Bank of Dallas

Kaplan noted that countries subjected to sanctions or increased trade tariffs by the United States are working most actively on the digital alternative to the dollar.

Messari to Raise $4M

According to the CEO of the startup more than 60 cryptocurrency projects use company's services
14 November 2019   61

A crypto-industry-specific startup, Messari, has completed a funding round led by Uncork Capital, which also included Blockchain Capital, CoinFund, Danhua Capital, Fenbushi Capital, Coinbase Ventures and former Coinbase technical director Balaji Srinivasan.

Former Managing Director of CoinDesk and CEO of Messari, Ryan Selkis, noted that now more than 60 cryptocurrency projects, as well as “the world's largest exchanges, funds and information service providers” use his company’s services. According to him, the funds raised will be used to automate the processes of receiving and processing data, as well as to expand the product line.

Founded a year ago, the company previously raised $ 1 million in seed investment from Danhua Capital, Blockchain Capital, Anthemis Group and other venture capital firms.

In the third quarter, Messari introduced a regulatory compliance asset monitoring service that also measures the market supply of coins. In addition, the company launched a beta version of the Messari Pro platform, which includes a set of professional tools for market analysis.