Stephen Moore was nominated by US President Donald Trump to join the Federal Reserve of the country. The bid for the role, however, failed by several votes and Mr. Moore couldn’t take the position.
Stephen Moore is an economist and former campaign adviser. After his bid didn’t come through, Mr. Moore has turned to manage another type of currency – a crypto one. As reported by Fortune Magazine, Moore is launching his own currency called Frax – one that potentially can threaten the role of central banks.
Today, Moore and the partners on the project are expected to announce official plans for Frax, a stablecoin that will be pegged to the USD. According to an interview with Fortune, Moore shared that it is his libertarian views on money that led him to believe that cryptocurrencies can be a viable alternative to national ones.
This is what Mr. Moore said:
I’ve followed monetary policy for 30 years and always been troubled by the government monopoly on currency, which is unhealthy for markets. It’s very healthy for private competitors to challenge central banks over the money supply.
The project is also supported by Sam Kazemian, who launched a competitor to Wikipedia that is based on blockchain to record incoming entries. Frax is expected to launch in the upcoming months and will be based on established blockchain technologies to record all Frax transactions.
While Frax may be pegged to the USD like many stablecoins, the cryptocurrency is different since it will be based on a fractional reserve – the backing will not be 1:1. Instead, Frax will work according to algorithms that loan out its reserves after which an interest is collected so that the value of the coin remains pegged to the USD. There will be no need of a central bank, since all loan transactions are to be recorded on the blockchain.
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Trump’s former Fed pick launches his own cryptocurrency called Frax was first posted on October 22, 2019 at 9:17 am.