Stephen Moore, President’s Trump nominee to the Federal Reserve, has set his sights on the crypto space.
According to the Block, the erstwhile Trump campaign adviser has teamed up with former Reagan deputy general counsel Ralph Benko and Everipedia co-founder Sam Kazemian to launch a new stablecoin called Frax.
“The days of government monopoly of currencies by central bankers is coming to a screeching halt,” Moore said. “currencies are intended to retain their value over time, but given the wild gyration in values of currencies and the struggle in many countries with hyperinflation, we need a global currency that has a stable value to benefit consumers, businesses and investors.”
“Central banks will soon feel the competition from private currencies such as Frax.”
Frax, interestingly enough, won’t be backed by a one-to-one pool of reserve dollars. Rather, it would rely on algorithms to loan out its reserves and generate interest to keep its value close to the greenback. Fortune writes that the loans will be recorded on a blockchain, eliminating the need for a central bank.
Photo: Gage Skidmore