Who needs the Fed?
Economist Stephen Moore won’t have a seat on the Federal Reserve after withdrawing his name from consideration. But in an email to Yahoo Finance on Tuesday, Moore confirms that he is in negotiations to join the team at Decentral. The story was first reported by Fox Business Network.
“I’ve been just in the last few months really starting to study up on these cryptocurrencies, and what impact those will have on the government currencies,” Moore said recently on Yahoo Finance’s The Final Round.
According to Fox Business Network, Decentral is a “crypto central bank,” guided by group of entrepreneurs led by Sam Kazemian. They’re hoping to create a way to help stabilize cryptocurrencies.
Bitcoin up sharply in 2019
Bitcoin had more than doubled this year, even before Facebook (FB) and its partners unveiled the white paper for Libra coin. Since the announcement, bitcoin is up another 22%.
Bitcoin’s comeback has even Fed Chair Jay Powell answering crypto questions at FOMC press conferences.
“Digital currencies are in their infancy,” Powell warned. “There are potential benefits here, there are also potential risks.”
Regarding the threat of crypto currencies replacing currencies backed by central banks, Powell said, “I think we’re a long way from that.”
Like Powell, Moore sees the risks and the benefits for crypto and central banks.
“This represents a new challenge for central bankers that they now have competition from private currencies,” Moore said. “And I think on balance, it’s a good thing. And the big question now will be whether the Fed and whether this SEC that come out of these futures trading corporation, whether they will start regulating these cryptocurrencies.”