Stephen Moore, a very vocal economist who used to be a campaign adviser for President Donald Trump, has revealed plans to release his own digital currency. According to his plans, the asset will be called Frax, and is planned to be a stablecoin, backed by a fractional reserve of the U.S. dollar.
As explained, Moore’s Frax, though a stablecoin, won’t be backed to the dollar 1:1. Instead, its availability will be figured out using algorithms and calculations, allowing the asset to be loaned with the ability to gain interest which will in turn ensure that the Frax stays pegged to the dollar.
Moore believes that his experience in economics and finance has taught him that a disruption of the financial status quo should be encouraged because it can only bring about progress for the sector. According to him;
“I’ve followed monetary policy for 30 years and always been troubled by the government monopoly on currency, which is unhealthy for markets…It’s very healthy for private competitors to challenge central banks over the money supply.”
Moore has also announced that the Frax team is not looking to build its own cryptocurrency. Instead, the asset will be hosted on an already existing blockchain with features they believe will fit properly.
Moore will float the Frax in partnership with Sam Kazemian, the CEO of Everipedia, an online encyclopedia. Frax will be ready and released sometime within the next few months.
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