Trump's Advisor Promotes a New Stablecoin Called Frax

4 min reading

Stephen Moore, a former Trump advisor and his candidate for the Fed, revealed his plans to introduce a new stablecoin, Frax, which is supposed to be the world's first fully decentralized global currency.

On Monday, Moore announced plans for a new cryptocurrency that will be pegged to the US dollar, which will result in it being more stable than other stablecoins. The new currency's goal is to eliminate the costs of currency transactions and simultaneously reduce, currently worldwide common, currency manipulation.

Moore commented on the possible influence the stablecoins may have on financial markets:

"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."

- adds Moore.

Stephen Moore is a well-known economic commentator and former adviser to Donald Trump, nominated by him to a position of a member of the Federal Reserve Board (Fed). The nomination, however, was withdrawn. Moore, along with Ralph Benko (a former Deputy General of Ronald Reagan) is supposed to join Sam Kazemian, a co-founder of Everipedia, an online encyclopedia similar to Wikipedia, but based on blockchain. Frax will be launched in the coming months.

 

Frax and other stablecoins

Unlike other stablecoins, Frax will be based on a fractional reserve, which means it would be linked to the dollar value, but not necessarily one-to-one like other stablecoins. The mechanism is similar to the way in which central banks buy bonds back by issuing debt.

The project is be based on the algorithms of "borrowing reserves" and collecting interest, thanks to which the Frax's value will be connected with the dollar which, in turn, should maintain a stable price of the currency. As the creators claim, these "borrowings" are supposed to be granted as part of blockchain, which eliminates the need to have a central bank and provides the currency owners with complete confidentiality in the way the funds are spent. Currency users will have a possibility to make token transactions without fear of privacy, closure or bankruptcy of the government, and most importantly - price manipulations.

 

Does Frax have a chance of success?

Frax is not the first project of this type. A project called Basis, which raised $100 million in order to create a fractional reserve supported by a complicated series of bond sales became worldwide famous just a year ago. Due to regulatory actions, the project collapsed though.

Nevertheless, the creators of Frax are not discouraged by the failure of Basis. Moore's (an economist with decades of experience) experience and Benko's (chief adviser in the Reagan administration) specialized knowledge argue for the success of their project.

Benko said:

"Frax's unique and elegant design offers the prospect for success where other stablecoins have struggled. It will empower owners to trade in a currency that they know will remain a stable unit of account and store of value and transparent and reliable across the globe."

He also said that:

"We are making a reliable, safe and secure stablecoin designed to make the world's international financial and monetary system more stable and efficient, transforming the world of finance forever."

If the project will really be a success will be apparent in the coming months and years.

Waluta Kurs Dokonaj zakupu

Dear customer,

We use cookies to provide our services correctly and safely. Cookies are small text-based data sets that shall be saved on the device you are using in connection with the use of this instnat website. Cookies are created in order to ensure proper functioning of thes instant website. By clicking the button "I accept and go to the website", you implicitly agree to creation of the cookies on your computer and to deploy automatic tracking and data collection and processing on behalf of the Tokeneo TEO OU. Click the above-captioned button is also tantamount to accepting website's privacy policy. Closing the notification by means of "X" is unequivocally connected with your consent. If you do not agree to any of the above, please discontinue using our Website.

“Cookies” shall make an identification of the software used by you and to customization of this instant website to your needs. Cookies contain the name of the domain from which they origin, duration of period of their storage on your computer and an assigned value.

Third party cookies:
We also use third-party cookies for the following purposes:

  • creating statistics - helping to understand the way Users use the Website, which allows to improve its structure and content with use of the analytical tools
  • defining a user profile - in order to display custom-tailored content in advertising networks.

External entities that might be source of any third-party cookies on this instant Website are as follows:

Using a settings of your web browser or by using pre-set configuration tools available in our service you can independently and at any time change the settings concerning your use of the “cookies”, specifying the conditionsof their storage and how your device is creating and downloading them. These settings can be changed to block the automatic handling of cookies in the settings of your web browser or inform about their placement on your device each time.

Detailed information about the options related to use of “cookies” is available in the settings of your software (web browser).

Service privacy policy

This instant document lays out the principles of the Privacy Policy on the tokeneo.com/news/pl website (hereinafter referred to as the "Website" or "Service"). The administrator of the Website is TOKENEO TEO OÜ (an Estonian law limited liability company) with its registered offices in Tallinn (in the province of Harju Maakond), at 19-7K Maakri Street (in the district of Kesklinna Iinnaosa), 10-145 Tallinn, Estonia, registered on 21.12.2018 in the Estonian Business Register under number 14630242, using the EU VAT number: EE102149487.

The full document to read the Tokeneo privacy policy is available in this document.

Advanced settings can be changed in your browser.