The influential Stephen Moore announces a crypto coin to compete with central banks

Stephen Moore was nominated by Donald Trump for the Fed but his bid for the role failed by a few votes.

Now Mr Moore has decided to manage a different sort of currency which is a digital stablecoin called Frax.

The new coin will be a stablecoin pegged to the US dollar to reduce its volatility.

He commented:

“I’ve followed monetary policy for 30 years and always been troubled by the government monopoly on currency, which is unhealthy for markets,” said Moore. “It’s very healthy for private competitors to challenge central banks over the money supply.”

Moore is one of the co-founders of Frax along with Sam Kazemian, he is an entrepreneur who launched a Wikipedia competitor that relies on blockchain technology to record entries. The pair say Frax will launch soon in the coming months, and will rely on the established blockchain which creates a tamper-proof public record to record Frax transactions. It will therefore be more friendly to the authorities.

This innovative new coin differs from Tether and other stablecoins due to the fact it will rely on a fractional reserve. This means it won’t be backed by a one-to-one pool of reserve dollars.

The Frax coin will rely on algorithms to loan out its reserves and collect interest in order to ensure the value of Frax is pegged to a dollar.

This is a vastly unproven method and in fact, a project called Basis tried it before. Basis founder Andreessen Horowitz raised USD 100 million but the project collapsed, under regulatory scrutiny and its founders reimbursed most of the funding.Let's see if Frax can flourish where Basis failed.

Share: Cryptos feed

All information and content on this website, from this website or from FX daily ltd. should be viewed as educational only. Although the author, FX daily ltd. and its contributors believe the information and contents to be accurate, we neither guarantee their accuracy nor assume any liability for errors. The concepts and methods introduced should be used to stimulate intelligent trading decisions. Any mention of profits should be considered hypothetical and may not reflect slippage, liquidity and fees in live trading. Unless otherwise stated, all illustrations are made with the benefit of hindsight. There is risk of loss as well as profit in trading. It should not be presumed that the methods presented on this website or from material obtained from this website in any manner will be profitable or that they will not result in losses. Past performance is not a guarantee of future results. It is the responsibility of each trader to determine their own financial suitability. FX daily ltd. cannot be held responsible for any direct or indirect loss incurred by applying any of the information obtained here. Futures, forex, equities and options trading contains substantial risk, is not for every trader, and only risk capital should be used. Any form of trading, including forex, options, hedging and spreads, contains risk. Past performance is not indicative of future FX daily ltd. are not Registered Financial Investment Advisors, securities brokers-dealers or brokers of the U.S. Securities and Exchange Commission or with any state securities regulatory authority OR UK FCA. We recommend consulting with a registered investment advisor, broker-dealer, and/or financial advisor. If you choose to invest, with or without seeking advice, then any consequences resulting from your investments are your sole responsibility FX daily ltd. does not assume responsibility for any profits or losses in any stocks, options, futures or trading strategy mentioned on the website, newsletter, online trading room or trading classes. All information should be taken as educational purposes only.

Join Telegram