Former Top Official Said He Would Consider FedCoin to Rival Bitcoin

Cryptocurrencies have always had an antagonistic relationship with governments, central banks, and regulators.

For a time, many even believed that cryptocurrencies were immune to government interference.

Governments and cryptocurrencies may be adversaries, but things may not stay that way forever.

In comments to The New York Times, Kevin Warsh, a former short-list candidate to head The Federal Reserve, expressed interest in pursuing a FedCoin that could be used to facilitate monetary policy.

Warsh stopped short of asserting that a FedCoin could replace cash, but he insisted that federal governments and central banks are not inherently against digital currencies.

A FedCoin could operate like a fiat-backed currency that helps facilitate digital transactions.

Since a significant amount of operations are already digital, a cryptocurrency could make these transactions faster, cheaper, more secure, and fully audible.

Although no country currently has a national cryptocurrency, Venezuela embarked on a controversial cryptocurrency initiative to help prop up their fledgling oil-driven economy.

Many people, especially at the government level, remain skeptical of cryptocurrencies, but the blockchain is much more accepted.

His opinions are illustrative of a broader sentiment that cryptocurrencies and the technology that powers them are more than kitschy.