Trump’s Nominee For FED Governor Advocates For Gold-Backed Crypto

Trump’s Nominee for the federal reserve board of governors, Judy Shelton, advocated for getting back to a gold standard in a crypto way as we are reading in the cryptocurrency latest news. President Donald Trump wants to add crypto to the mix and in an interview, Shelton told the reporters:

 “I don’t see it so much as returning [to the gold standard], more like ‘back to the future.’ I think that what a gold standard stands for is a monetary discipline for its own sake. Money is supposed to be a unit of account, a reliable measure, and a dependable store of value. It really shouldn’t be subject to who’s the chairman of the Federal Reserve.”

According to Trump’s nominee, a future idea for the gold standard could involve a digital currency component. She explained that central banks don’t serve the private sector in providing the reliable unit of account and with the gold standard you have that stability so it is a piece that’s missing which could be used in a very cryptocurrency way. Engaging with the digital currency sector, is not a new idea for Shelton who has advocated for the digital dollar previously in helping to preserve the ‘’primacy of the US currency’’ across the world. Shelton argued:

 “How can a dozen […] people meeting eight times a year, decide what the cost of capital should be versus some kind of organically, market supply determined rate? The Fed is not omniscient. They don’t know what the right rate should be. How could anyone? […] If the success of capitalism depends on someone being smart enough to know what the rate should be on everything . . . we’re doomed. We might as well resurrect Gosplan.”

The activism of the central banks hinders the ability of the market to function free from centrally-planned overreach and she overlapped the proponents of Bitcoin who argued that blockchain technology can ensure that the currency will remain strong if anyone attempts to manipulate its value. Shelton got sympathetic to advocates of digital assets who claim that bitcoin can induce a deflationary monetary policy by serving a reserve currency with a finite supply. She also said that she is open to any approach where the Fed will target a dollar price for the gold by ‘’linking the supply of money and credit to gold”:

 “A linked system could allow currency convertibility by individuals (as under a gold standard) or foreign central banks (as under Bretton Woods). Either way, it could redress inflationary pressures.”