cryptojournalist
Musk Joins Growing Voices Questioning the Federal Reserve’s Power
Elon Musk recently amplified Senator Mike Lee’s call to abolish the Federal Reserve, the central bank that has managed U.S. money since 1913. By sharing Lee’s tweet, Musk threw his support behind a movement that believes the Fed operates beyond its mandate, with too little oversight from the president. Senator Lee criticized Fed Chairman Jerome Powell’s statement that he wouldn’t step down even if the new president requested it, calling the Fed’s independence a departure from what the Constitution intended.
Rising Skepticism of Central Banks and the Push for “Sound Money”
More people, including Bitcoin advocates and “sound money” supporters, are beginning to question the idea of centralized currency control. They argue that because the Federal Reserve controls the dollar’s supply, it opens the door to inflation and currency devaluation. With the dollar losing about 96% of its value since the Fed’s creation, critics are pushing for a financial system that relies less on centralized control and more on decentralized alternatives like Bitcoin, which some see as a way to avoid the inflation seen with traditional currencies.
Bitcoin Seen as a Defense Against Inflation
As U.S. national debt surpasses $35 trillion, Bitcoin is increasingly seen as a hedge against inflation. Florida’s financial chief Jimmy Patronis has been advocating for Bitcoin investments within the state’s pension funds, believing it could protect citizens’ purchasing power as the dollar’s value weakens. Wyoming Senator Cynthia Lummis also introduced a bill this year to establish a “Bitcoin Strategic Reserve,” aimed at providing a buffer against the dollar’s decline.
Trump Signals Interest in Using Bitcoin to Tackle National Debt
At the Bitcoin 2024 conference, President-elect Donald Trump hinted at an intriguing idea: he suggested that Bitcoin could play a role in managing America’s massive national debt. While details remain unclear, Trump’s comments signal that his administration might explore using cryptocurrency to relieve some of the financial strain caused by debt and inflation, reflecting a growing interest among U.S. leaders in Bitcoin’s potential as part of economic policy.
