President Donald Trump on Friday nominated Kevin Warsh, who views Bitcoin as a strategic tool for central banks rather than a threat to the financial system or a competitor to the dollar, to be chairman of the Federal Reserve.
Warsh said in an interview with the Hoover Institution last year that price movements could indicate whether the Federal Reserve is mismanaging the economy or ignoring inflation signals.
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“I think they often make very good police officers when it comes to policy,” Warsh said.
President Trump announced his selection on Truth Social, praising Warsh’s previous tenure on the Federal Reserve Board and economic and financial background.
Warsh, a former Morgan Stanley banker and Hoover Institution fellow, has distinguished himself from traditional central bankers with his constructive stance on cryptocurrencies.
In a recent interview, the candidate argued that Bitcoin serves a disciplinary function for monetary policy.
He explicitly disagreed with the late investor Charlie Munger, who previously characterized Bitcoin as “evil” for undermining the control of the Federal Reserve.
Warsh instead said that Bitcoin provides the financial system with the “market discipline” it needs, describing it as an “important asset” that can signal when policymakers make a mistake.
The candidates rejected the anxiety that often characterizes regulatory views on the sector.
“Bitcoin doesn’t make me nervous,” Warsh said bluntly when asked about the asset class’s potential risks.
He admitted that he had early exposure to the technology through venture capitalist Marc Andreessen in 2011, but also admitted that he initially overlooked its importance.
He continued to draw a clear distinction between the utility of the technology and the sovereignty of the dollar, but made it clear that while he valued Bitcoin, he believed “Bitcoin is not a replacement for the dollar.”
This position suggests that he sees cryptocurrencies as a similar asset class, rather than an alternative to everyday transactions or global domination.
Warsh also characterized the cryptocurrency industry as an issue of national economic competitiveness, emphasizing that the U.S. is broadly home to the development of Bitcoin and cryptocurrency software.
Warsh previously served as the youngest head of the Federal Reserve from 2006 to 2011 at the age of 35.
President Trump emphasized Warsh’s role in managing the board’s operations and his experience as the Federal Reserve’s representative to the G20.
