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Trump’s federal candidate pleads for a gold-backed currency, including crypto

May 21, 2020

President Donald Trump’s candidate for the Federal Reserve Board of Governors reaffirms her defense of the gold standard and adds the digital currency.

In one interview On May 20, Judy Shelton told reporters:

“I don’t see it as much as going back [al patrón oro]but more like “back to the future”. I think what gold standard is is money discipline in itself. Money should be a unit of account, a reliable measure and a reliable store of value. It shouldn’t depend on who the President of the Federal Reserve is. ”

According to Shelton A “futuristic” view of the gold standard can include a digital currency component. Said Central banks “do not serve the private sector to provide this reliable unit of account […] You had this stability under the gold standard, and I think it’s missing […] Very “cryptocurrency” could be used. “

Keep the dollar as a global standard

Trump’s federal candidate pleads for a gold-backed currency, including crypto
Trump’s federal candidate pleads for a gold-backed currency, including crypto

Participation in the emerging digital currency sector is not entirely new Shelton, as has previously defended the potential of the digital dollar to maintain “the primacy” of the US currency worldwide.

For Shelton, the United States needs a “restart” away from the “distortions” of the Federal Reserve for the last half century. She previously argued that the Federal Reserve’s independence status runs counter to a market-oriented society:

“How can a dozen […] of people who meet eight times a year decide how high the cost of capital should be against a rate that is organically determined by the market? The Federal Reserve is not omniscient. They don’t know what the right rate should be. How could anyone know […] If the success of capitalism depends on someone being smart enough to know what the rate should be for everything … we are doomed to fail. We could also revive Gosplan. “

Central bank activism, for Shelton, affects the ability of the market to function without excessive central planning. Here it overlaps with Bitcoin (BTC) defenders who argue that blockchain technology can ensure that the currency remains immune to attempts by a government to “manipulate” its value.

Shelton could very well sympathize with advocates of digital shortages who claim Bitcoin can trigger deflationary monetary policy serve as a reserve currency with limited supply.

However, has also said that it is open to an approach where the Federal Reserve would target a dollar price for gold, “Linking money and credit to gold”:

“A linked system could allow the currency to be converted by individuals (as in the case of a gold standard) or by foreign central banks (as in the case of Bretton Woods). In any case, it could correct inflationary pressures. “

Though there have been rumors that the Senate Banking Committee would vote on Judy Shelton’s Federal Reserve nomination earlier this month, progress on the issue appears to have stalled given the bipartisan skepticism. “Federal Reserve supporters”, gold supporters and supporters of the digital dollar are waiting, for now.

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