Key Takeaways
- Elon Musk backed a call to end the Federal Reserve.
- Senator Mike Lee's call aligns with Bitcoin advocates against fiat currency.
- President-Elect Trump hinted at using Bitcoin for national debt.
Elon Musk has drawn attention to the movement to abolish the Federal Reserve by sharing a post from Utah Senator Mike Lee.
Lee’s message criticized Federal Reserve Chair Jerome Powell’s stance that he would not resign if asked by President-Elect Donald Trump, asserting that this independence misaligns with constitutional intentions for executive control over monetary policy.
Lee’s post stated:
The Executive Branch should be under the direction of the president. That’s how the Constitution was designed. The Federal Reserve is one of many examples of how we’ve deviated from the Constitution, in that regard. Yet another reason why we should end the Fed.
This sentiment resonates strongly with “sound money” advocates and Bitcoin supporters, who view centrally controlled fiat currencies as vulnerable to inflation and devaluation.
Bitcoin
With the national debt exceeding $35 trillion, Bitcoin has gained interest from some lawmakers and financial experts as a tool to preserve purchasing power.
In July 2024, Wyoming Senator Cynthia Lummis introduced a bill proposing a strategic reserve of Bitcoin to counter rising inflation.
Florida CFO Jimmy Patronis has similarly suggested that Bitcoin investments could protect public pension funds from dollar devaluation.
During the Bitcoin 2024 conference, President-Elect Donald Trump hinted at considering Bitcoin to address the national debt, signaling growing political acceptance of Bitcoin’s potential role in U.S. financial policy.
