Stephen Moore, who recently rescinded his bid to join the Federal Reserve, announced plans to start his own cryptocurrency-based mini-Fed – billed as “the world’s decentralized central bank,” according to Fox Business.
A pitch deck sent exclusively to Fox allegedly said Moore has teamed with a group of unnamed entrepreneurs to develop a “central bank” – ironically called “Decentral” – aimed at reducing the volatility among digital currencies.
The bank will attempt to regulate the supply of crypto, just as the Fed controls monetary policy in the U.S. It will exchange its own dollar-backed token for other cryptocurrencies and use an algorithm to control the amount of stable tokens in circulation, Decentral officials told FOX. This stable coin is similar to Facebook’s Libra, and aims to promote uniformity and reliability among a fractured landscape of digital assets.
“I’m really excited about doing this,” Moore told the business media outlet. “I hope it makes me rich.”
Moore said he will officially join Decentral on July 1, as chief economic officer and report to Sam Kazemian, Decentral CEO. “These guys are super smart,” he said of his partners.
He also told Fox, he believes cryptocurrencies can circulate in the economy in such a way that they don’t conflict with the Fed’s monetary policy, adding, “This is an alternative way of making payments.”
Kazemian told Fox that Decentral isn’t trying to compete with the Fed, but plans to introduce their business model to Fed officials at some point.
“Decentral will solve the biggest problem facing regulators when it comes to the crypto space: The current instability of pricing,” he said.
“Our goal is to be collaborative, not combative,” he said. “The next big wave in the crypto space is a digital currency that is designed to be useful to consumers and keep stable prices instead of acting as volatile, speculative investments. Stable coins are the next big innovation in the crypto industry.”
It’s unclear how Decentral will convince holders to trade their crypto for this new token, or how the firm will act to prevent inflation – a core mandate of Fed – if the business does not have authority to act as a central clearinghouse.
Kedar Iyer will serve as chief technology officer, Travis Moore as director of software, and Henry Liu as chief operating officer —all of whom have backgrounds in crypto and technology startups. The remaining three partners have political backgrounds.
Mike Novogratz is cited as an investor in Decentral’s parent company.
Moore previously worked as an editorial writer for the Wall Street Journal, and was a member of the conservative Heritage Foundation. He is also a distinguished visiting fellow to the White House, following his advisement on President Trump’s 2017 tax plan.
Moore was picked by Trump in March to fill one of two vacant positions at the Fed, but had not been formally nominated. He withdrew his bid in early May after weeks of criticism about his political partisanship, shifting views on interest rate policy, and sexist comments about women.
His discussions with Decentral began at recent SALT conference, a hedge fund and investing confab in early May run by Anthony Scaramucci of SkyBridge Capital.
Federal Reserve seal via Shutterstock