Kevin Warsh Nominated as Fed Chair, Cautious on Bitcoin Payments

The U.S. President has nominated Kevin Warsh to be the next Chairman of the Federal Reserve System, an appointment that could have a profound impact on the direction of U.S. monetary policy and the government's stance on digital assets. Warsh served as a Fed Governor from 2006 to 2011 and now requires Senate confirmation before formally assuming office.

If approved, he will lead the central bank in critical tasks related to inflation control, interest rate decisions, and financial stability maintenance, at a time of rapid financial technology transformation. Warsh has repeatedly expressed reservations about cryptocurrencies, especially Bitcoin. He believes that Bitcoin's extreme price volatility makes it difficult to function as a unit of account or medium of exchange in daily transactions, and stable price performance is a prerequisite for a currency to fulfill its basic functions.

Nevertheless, Warsh has not completely dismissed the value of Bitcoin. He likens it to digital gold, pointing out that it may have unique advantages in asset storage and hedging against economic uncertainty. In his view, Bitcoin is more suitable as a store of value than as a circulating currency in the traditional sense. In addition, Warsh emphasizes that many blockchain-based assets should be understood from the perspective of technological evolution, rather than simply as financial products. He has stated that cryptocurrencies are essentially closer to software innovation, and their development should be evaluated within the overall framework of digital infrastructure and FinTech. This nomination comes as U.S. regulators are accelerating the advancement of digital asset legislation and exploring central bank digital currencies (CBDC). If Warsh is successfully appointed, his prudent and pragmatic stance may guide the Federal Reserve to seek a more precise balance between encouraging technological innovation and ensuring the stability of the financial system.