Economist Stephen Moore Proposes the Idea of Having a Crypto Central Bank

Bitcoin and other cryptocurrencies came into existence on the very idea of having a decentralized way of money transfer. However, in a new concept, economist Stephen Moore has proposed the idea of having a new cryptocurrency central bank after he failed in his bid to join the Federal Reserve.

In an exclusive report by Fox Business, Moore has been joined by a number of entrepreneurs who believe that the central bank will help to stabilize Bitcoin and other cryptocurrencies in the market.

Naming the crypto bank as “Decentral” the idea is to perform Fed-like duties in regulating the supply for cryptocurrencies just as the Fed controls the supply of USD. The company officials say that the bank will exchange its new token against the existing decentralized cryptocurrencies.

The supply will be controlled through a strictly followed algorithm and the bank’s native crypto token will be either tied to the USD or any other “stable” valuation method. More will be reportedly the chief economic officer for the central bank and will be reporting to Decentral CEO Sam Kazemian.

Speaking to the publication Moore said that Decentral’s cryptocurrency will be somewhat similar in functionality to the recently launched Facebook’s native cryptocurrency Libra. He added that the Decentral crypto will be pegged to a stable currency aimed at providing reliability and uniformity in the crypto space that is currently plagued with huge volatility and uncertainty.

Crypto has been seen as an underlying threat by many central banks as it challenges the Fed’s power to control the money supply. Moore’s decision to join Decentral seems to be influenced after he was denied a seat at the Federal Reserve. Moore is expected to join the Decentral bank on the 1st of July.

Unlike economist Nouriel Roubini who recently called crypto as the “mother and father of all bubbles”, Moore believes that cryptocurrencies still have a role in the global economy without having a direct conflict with the Fed.

Praising his partners of the Decentral bank, Moore said: “These guys are super smart. This is an alternative way of making payments.” Chris Whalen, an independent journalist who’s knowing Moore since long says: “Moore has never liked central banks… He wouldn’t have been a traditional governor, so I think by joining a cryptocurrency outfit, he’s being more true to himself than serving on the Fed Board.”

It is unclear at this point how the Decentral bank plans to proceed ahead with its plans while clearing regulatory authorities and clearing houses. However, Decentral’s CEO Sam Kazemian said: “Decentral will solve the biggest problem facing regulators when it comes to the crypto space: The current instability of pricing.

Decentral, he added, “will allow more and better price discovery without wild swings in value that have been the case”.