Kevin Warsh, who served previously as a US Federal Reserve governor from 2006 until 2011, wanted to become a Fed chairman once again a last year, however US President Donald Trump has appointed Jerome Powell instead of him. Nevertheless Warsh gave some food for thought regarding the possibility of creating a Digital Asset called FedCoin according to The New York Times.

He stated that if he would have an appointed a team, he would suggest the implementation of such a federal currency. It would work as a government-sponsored Cryptocurrency with a central bank controlled algorithm which could keep the price stable. Warsh believes that blockchain technology is very useful, especially if we consider that it could replace money-wiring as it enables to transfer trillion of dollars within minutes. The former governor expressed that it is not to replace cash, but use it as a “pretty effective way when the next crisis happens for us to maybe conduct monetary policy.”

Warsh is not alone with his views as several other institutions such as the Bank of England and the Monetary Authority of Singapore have been investigating the possibility of integrating blockchain in their economy. Even the current Fed chief, Jerome Powell, has made some comments during last November: “We actually look at blockchain as something that may have significant applications in the wholesale payments part of the economy.”

We believe that this would definitely result in an awkward situation as the biggest reason that these new assets like Bitcoin took off was their decentralized and immutable nature, thus we believe that this is just a weak attempt at using the underlying technology for a non-optimal use case.

On the bright side seeing giant firms and entities recently such as Goldman Sachs, PwC, et cetera considering the implementation of blockchain and the introduction of crypto related services, topping with the latest news of NASDAQ planning to start its own crypto trading platform, we are confident that these just further legitimize the real decentralized assets.