Former USA Federal Reserve Governor Supports ‘FedCoin’ Project

Former USA Federal Reserve Governor Supports ‘FedCoin’ Project

Kevin Warsh, a former U.S. Federal Reserve governor, recently told The New York Times the Fed should give serious consideration to releasing a government-sponsored cryptocurrency — commonly called a “FedCoin.”

Warsh is among a group of investors in Basis, formerly Basecoin, a cryptocurrency designed with an algorithmic central bank that will keep the price stable.

Warsh, was a Fed governor from 2006 to 2011 and was a leading contender to become its chairman last year.

Had he returned to the Fed, Warsh said he would have assigned a team to explore a “FedCoin.” He does not see such a coin replacing cash, but he views it as a way to conduct monetary policy when the next crisis occurs. He noted that most central banks believe cryptocurrency assets are prone to fraud and investor losses.

A distinguished visiting fellow at the Hoover Institution at Stanford, Warsh said blockchain technology would be helpful for enabling the transfer of trillions of dollars between banks.

The Bank of England and the Monetary Authority of Singapore are already exploring such a concept.

Fed Chairman Jerome Powell said in his November confirmation hearing that blockchain could have “significant applications in the wholesale payments part of the economy.”


Author – Lester Coleman

Source – CCN

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