Stephen Moore, previous Donald Trump’s Federal Reserve nominee, has revealed to Fortune that he is going to officially declare his very own dollar-pegged stablecoin dubbed “Frax” on October 21. The introduction of the new coin is anticipated to occur “in the coming months.”
There’s plenty of accessible coins already. However, Moore asserts that Frax will be a beast of another kind. The new coin will depend on a fractional reserve of dollars that it will loan out in order to earn interest. In such a manner, they will ensure that the value of Frax will consistently be backed by greenbacks.
In the wake of pulling back his nomination, Moore chose to concentrate on crypto. Back in June, he said that central bankers were “freaking out” about the incipient asset class during an interview with CNBC.
In a recent interview with Fortune, he repeated his point that it was sound for privately owned businesses to rival central banks with regards to the money supply.
“I’ve followed monetary policy for 30 years and always been troubled by the government monopoly on currency, which is unhealthy for markets.”
As previously reported, Fed Chairman Jerome Powell communicated his analysis of “cybercurrencies” back in September, which incited a quick drop in the cost of Bitcoin.
In the meantime, crypto-friendly US Congressman Warren Davidson put forth a defense for tokenizing the US dollar.