Trump’s Fed pick Kevin Warsh is “not nervous” about Bitcoin while plotting a digital dollar takeover
Trump's potential Fed nominee Kevin Warsh is unconcerned by Bitcoin while advocating for a US digital dollar, presenting a complex policy outlook.Summary
Donald Trump nominated former Federal Reserve Governor Kevin Warsh to lead the central bank, with expectations that Warsh would favor shrinking the Fed's balance sheet more aggressively than current Chair Jerome Powell. Warsh's stance on interest rates is nuanced; while he currently favors lower rates, his past history suggests a tougher stance on inflation, leading some to view him as a moderate. His potential policy shift is framed by analysts as "Shrink the Fed, Ease the Rate." Regarding cryptocurrency, Warsh views Bitcoin as software and is not nervous about it, suggesting it could provide "market discipline." However, his focus is strongly on developing a US "digital dollar" for wholesale transactions to improve payment efficiency, aligning him with a CBDC approach rather than viewing private tokens as alternative money. His nomination faces a confirmation fight, with critics citing concerns over Trump's influence on Fed independence, though supporters praise his expertise.
(Source：CryptoSlate)