A former nominee by President Donald Trump for the Federal Reserve, Stephen Moore, has announced his intention to launch a new stablecoin.
Moore says he is partnering with Ralph Benko and Everipedia co-founder Sam Kazemian, and will serve as chief economic officer for the project.
The stablecoin dubbed Frax, will be backed by a fractional reserve as opposed to being pegged to the value of the U.S. dollar or another fiat currency.
Moore on the disruption Frax and stablecoins pose to the traditional financial markets said:
Central banks will soon feel the competition from private currencies such as Frax. The days of government monopoly of currencies by central bankers is coming to a screeching halt.
Currencies are intended to retain their value over time, but given the wild gyration in values of currencies and the struggle in many countries with hyperinflation, we need a global currency that has a stable value to benefit consumers, businesses and investors.