While Warsh has previously advocated the benefits of CBDCs over stablecoins, he was also an investor in stablecoin startup Basis, which developed a specific type of stablecoin known as an algorithmic stablecoin, similar to the one involved in the 2022 crypto collapse. Additionally, Warsh was involved in the early days of Bitwise Asset Management, which now operates publicly traded exchange-traded funds (ETFs) for Bitcoin and other crypto assets.
In reference to Bitcoin specifically, Warsh has made comments ranging from neutral to positive. that once told cnbc Bitcoin is effectively gold for anyone under 40. Recently, he defended Bitcoin in an interview Uncommon Knowledge with Peter RobinsonHe said, “Bitcoin doesn’t bother me. I think of it as an important asset that can help inform policymakers when they’re doing the right thing and the wrong thing. It’s not a substitute for the dollar. I think it can often be a very good policeman for policy.”
I didn’t say that #bitcoin There was a secret project by the US government to give us an exit strategy after destroying the dollar, but it would kind of make sense if that were the case.
– Kyle Torpey (@kyletorpey) 13 June 2021
When you put together Warsh’s comments on Bitcoin and stablecoins, it coincides with the Trump administration’s policies on crypto, including the use of stablecoins to strengthen US monetary hegemony and the establishment of a national Bitcoin reserve. Wersch’s comments on Bitcoin acting as a method of keeping policymakers in check would also be in line with the research of Jal Ture, who has long argued that Bitcoin is the ideal foundation for mathematician John Nash (yes, one to one). a beautiful Mind Fame) Ideal wealth concept.
This may all seem generally positive for Bitcoin; However, the reality is that crypto asset prices initially fell upon news of Warsh’s impending nomination. According to a report CoinDeskThis was likely due to Warsh’s previous comments pointing to a more hawkish stance on Fed policy than generally expected from Trump, who has consistently ridiculed Powell for not lowering interest rates. That said, it is important that the Fed Chairman does not have unilateral power over central bank policy.
Although Bitcoin is often seen as a safe-haven asset similar to gold, it has often turned to a risk asset in times of economic uncertainty, as shown by the recent tensions around Greenland. Of course, gold has been acting much like Bitcoin when it comes to price volatility recently.
At the end of the day, it is still very early in terms of central bank interest in Bitcoin, with Bank of France Governor François Villeroy de Galhau recently revealing that he had no idea Bitcoin had no central issuer during a discussion with Coinbase CEO Brian Armstrong at the World Economic Forum. That said, the Czech National Bank acquired some bitcoins as part of a pilot program last year, with European Central Bank President Christine Lagarde saying such activity would never happen.
Thesis: Fed.
Counterparty: Bitcoin.
Synthesis: Pro-Bitcoin Fed.pic.twitter.com/WKSQYlxgxP– Balaji (@Balaji) 31 January 2026
It is difficult to know what Warsh’s exact policy priorities will be once he returns to the Fed, but his nomination furthers the discussion about a potentially synergistic relationship between Bitcoin and the US dollar. With US debt reaching unsustainable levels and foreign central banks holding more gold than US treasuries for the first time since 1996, one has to wonder whether an economic adviser to Russian President Vladimir Putin was right to call out the United States for a purported crypto-centric plan to maintain monetary dominance in an increasingly digital and seemingly multi-polar world. As shown by the Maduro regime in Venezuela and the use of the Tether stablecoin USDT by the Central Bank of Iran, crypto may also be a double-edged sword for the US.
Of course, the matter of the Trump family fortune is also now linked to the success of the crypto industry in the US, which enjoyed $1.4 billion in crypto profits last year amid allegations of unprecedented corruption and pay-to-play schemes. This type of profiteering could ultimately lead to a political backlash, as Senate Democrats have repeatedly said these conflicts of interest need to be addressed in the Clarity Act.
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