Who is Kevin Warsh, whom Donald Trump considers to replace Powell as Fed chairman? Here Are Bitcoin and Cryptocurrency Opinions

There are claims that Donald Trump is planning to make radical changes in the Fed. Trump is reportedly considering replacing current Fed Chairman Jerome Powell with Kevin Warsh. This possible appointment has sparked controversy in both traditional financial circles and the cryptocurrency world.

Kevin M. Warsh served on the Fed's Board of Governors from 2006 to 2011. After graduating from Harvard Law School after studying economics and statistics-based public policy at Stanford University, Warsh began his career at Morgan Stanley. In 2002, he joined the George W. Bush administration and served on the National Economic Council. In 2006, he was appointed Fed Governor and during his tenure, Warsh undertook important tasks on global economic relations, especially the 2007–09 financial crisis.

In 2018, Warsh made early investments in algorithmic stablecoin project Basis, and later in crypto index fund manager Bitwise. However, his approach to cryptocurrencies has always been cautious. Warsh found Bitcoin inadequate as a means of payment due to its high price volatility, but made an assessment that he likened to gold as a "sustainable store of value". He described blockchain technology as a promising piece of software for the American financial system "when used correctly."

In a 2022 op-ed in the Wall Street Journal, Warsh argued that the U.S. should (CBDC) develop its own central bank digital currency in response to China's digital yuan move. However, this view has drawn criticism from Bitcoin proponents for describing private cryptocurrencies as "software that pretends to be money."

Warsh's views contradict Trump's recent Bitcoin-friendly statements. Trump promised to establish a Bitcoin strategic reserve for the United States at the Bitcoin Conference in Nashville in July 2024.

It is not yet clear whether Trump will actually put Warsh in charge of the Fed.