US President Donald Trump’s former nominee for the Federal Reserve, economist Stephen Moore, is all set to unveil a new stablecoin, according to the reports published on October 21, 2019. The stablecoin, referred to as Frax, is being planned by Moore along with other entrepreneurs namely Ralph Benko and Sam Kazemian. While Benko has served as the deputy general counsel to Reagan, Kazemian is the co-founder of Everipedia.
The reports also revealed that Moore would be serving as Frax’s Chief Economic Officer and co-founder alongside Kazemian. Benko will handle the position of the general counsel at Frax. The co-founders of Frax will apparently make an official announcement soon.
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The proposed stablecoin, Frax, would be pegged to the United States Dollars but not in the ratio of 1:1. Its reserve would be given out as loans to generate interest so that Frax value remains close to a dollar. The record of these loans would be kept using the blockchain-based algorithms, eradicating the need to have a central bank.
In his statement to Fortune, Moore said that unveiling digital currency is in alignment with his libertarian views. He also shared his belief saying that crypto is a key alternative to the money backed by the states.
Continuing further, Moore also shared that he has followed the government’s monetary policy for as many as 30 years and all this while, he has been troubled regarding their currency monopoly as it’s unhealthy for the market. According to Moore, it is extremely healthy when private competitors challenge the central banks regarding the monetary supply.
As of now, Frax has not gained support from outside investors, per the reports.
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Meanwhile, the FATF (Financial Action Task Force) has expressed its concern regarding the potential illicit usage of stablecoins. The group worries that stablecoin’s possible widespread adoption would easily help criminals break laws through its use.
