Elon Musk appeared to support a call to end the Federal Reserve Bank in the United States after reposting a tweet from Utah Senator Mike Lee — who called for greater executive oversight over monetary policy and abolishing the central bank.
Lee argued that Federal Reserve Chair Jerome Powell’s recent assertion that he would not resign from his post, even if asked to by incoming President Donald Trump, represented an out-of-control system. Lee wrote via his social media account:
“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.”
Lee’s call to abolish the Federal Reserve Banking System represents a growing sentiment among “sound money” advocates and Bitcoin (BTC) maximalists — who argue that centrally managed fiat currencies are prone to monetary inflation and currency devaluation.
Source: Elon Musk
Related: How the US Fed thinks a Bitcoin ban could preserve deficit spending
Bitcoin as a hedge against currency inflation
As the national debt in the United States tops $35 trillion, Bitcoin has been increasingly praised by lawmakers, individuals and financial institutions as a hedge against the currency inflation caused by decades of money printing from the Federal Reserve.
Jimmy Patronis, Florida’s chief financial officer and one of the officials responsible for overseeing the state’s pension funds, is pushing for the state’s pension funds to invest in BTC to protect consumer purchasing power from a depreciating US dollar.
Current US national debt. Source: US Debt Clock
In July 2024, Wyoming Senator Cynthia Lummis introduced the Bitcoin Strategic Reserve bill in the Senate. Lummis specifically cited rising inflation and the corresponding loss in purchasing power as the main impetus for the bill.
President-Elect Donald Trump, who will assume office in January 2025, also teased a strategic Bitcoin “stockpile” at the Bitcoin 2024 conference in Nashville, Tennessee. Shortly after Trump’s keynote address at the conference, the incoming president hinted at using Bitcoin to pay the national debt.
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