I'm pretty sure he didn't mean that.  To him the issuing of currency would be defined by an algorithm depending on the spendings (assuming a computer can know these data).  The FED would have no power on it once it is launched:  he insists on the idea of throwing the key a way, so it is not ambiguous at all.

I doubt there is anyway for a computer to measure economics activities though, since money transfers could easily be fake (with no real economic exchange behind) by anyone willing to increase the money supply.  But this is an other matter.

To me a computer should be economicly blind:  its only job should be to provide money at a predefined rate, whatever the economic situation is.  Selgin doesn't agree with that, but he likes the idea of a monetary system being "human-proof".