Former Donald Trump's Federal Reserve nominee Stephen Moore has told Fortune that he is going to formally announce his own dollar-pegged stablecoin called "Frax" on Oct. 21. The launch of the new coin is expected to take place "in the coming months."
There's already a plethora of available coins, but Moore claims that Frax will be a beast of a different kind. The new coin will rely on a fractional reserve of dollars that it will loan out in order to collect interest. In such a way, they will make sure that the value of Frax will always be backed by greenbacks.
After withdrawing his nomination, Moore decided to focus on crypto. Back in June, he insisted that central bankers were "freaking out" about the nascent asset class during an interview with CNBC.
In a recent interview with Fortune, he reiterated his point that it was healthy for private companies to compete with central banks when it comes to the money supply.
“I’ve followed monetary policy for 30 years and always been troubled by the government monopoly on currency, which is unhealthy for markets.”
As reported by U.Today, Fed Chairman Jerome Powell expressed his criticism of "cybercurrencies" back in September, which provoked an immediate drop in the price of Bitcoin.
Meanwhile, crypto-friendly US Congressman Warren Davidson made a case for tokenizing the US dollar.