Former Fed Nominee for President Trump to Launch Frax Stablecoin Not Pegged to USD
The former pick of President Donald Trump for the Federal Reserve (Fed), Stephen Moore, has recently affirmed that he will issue a new stablecoin, which is set to be backed by a fractional reserve.
Moore is set to partner with Ralph Benko, a former deputy general counsel from the Reagan era, and with Sam Kazemian, the founder of Everipedia. Together, these three will launch the new stablecon, which will be named Frax.
The announcement revealed that Moore will serve as the new Chief Economic Officer behind the product and that Kazemian will work as the other co-founder in this initiative.
According to Moore, private currencies such as the one he is creating will soon be an important competition with central banks. This, he believes, will end the government’s monopoly of currencies and money, which will diminish the power of central bankers.
He believes that a global stablecoin will be important because there are several countries living in hyperinflation today and there is the need for a global currency that can have a stable value and protect them from these acute shifts in the economy.
It was also revealed that the new cryptocurrency will not be backed 1:1 with the dollar (USD). Instead, the reserves of the stablecoin will be loaned to generate interest on the money that the stablecoin provider has. This, the creators affirm, will ensure that prices will always stay close to one dollar.
Before joining with the others to launch Frax, Moore was a campaign adviser to Donald Trump. Benko was nearer to the blockchain world as he worked with the Chamber of Digital Commerce before, known as a pro-crypto advocacy entity.