President Donald Trump nominated Kevin Warsh as Chairman of the Federal Reserve on Friday, selecting a candidate who views bitcoin as a strategic tool for central banks rather than a threat to the financial system or a competitor to the dollar.

Warsh noted in a Hoover Institution interview last year that price movements can indicate when the Federal Reserve is mismanaging the economy or ignoring inflation signals.

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“I think it can often be a very good policeman for policy,” Warsh said.

Trump announced the selection on Truth Social, praising Warsh’s previous tenure on the Federal Reserve Board of Governors and his background in economics and finance.

Warsh, a former Morgan Stanley banker and Hoover Institution fellow, has distinguished himself from traditional central bankers through a constructive stance on cryptocurrency.

The nominee argued in a recent interview that Bitcoin serves a disciplinary function for monetary policy.

He explicitly disagreed with the late investor Charlie Munger, who previously characterized Bitcoin as “evil” because it undermines the Federal Reserve’s control.

Warsh instead said that bitcoin provides necessary “market discipline” for the financial system, describing it as an “important asset” capable of signaling when policymakers make errors.

The nominee rejected the anxiety that frequently characterizes regulatory perspectives on the sector.

“Bitcoin does not make me nervous,” Warsh stated directly when asked about the potential risks of the asset class.

He acknowledged his early exposure to the technology in 2011 through venture capitalist Marc Andreessen, but admitted he initially missed its significance.

He continued to draw a clear distinction between the technology’s utility and the sovereignty of the dollar, but clarified that, while he values Bitcoin, he believes “it is not a substitute [for] the dollar.”

This position suggests he views cryptocurrency not as a replacement for daily transactions or global dominance, but as a parallel asset class.

Warsh also framed the cryptocurrency industry as a matter of national economic competitiveness, and he emphasized that the locus of software development for Bitcoin and cryptocurrency broadly is in the United States.

Warsh previously served as the youngest Governor in Federal Reserve history at age 35, serving from 2006 until 2011.

Trump highlighted Warsh’s role managing the Board’s operations and his experience as the Federal Reserve’s representative to the G-20.

“I have known Kevin for a long period of time, and have no doubt that he will go down as one of the GREAT Fed Chairmen,” Trump wrote in his Truth Social post announcing the nomination (emphasis his).

Header image by Dan Smith via creative commons.