Thomas Daniels
The United States dollar has seen a dramatic 96% drop in purchasing power since the inception of the Federal Reserve in 1913. This decline has spurred ongoing debate over the role and influence of the U.S. central bank in monetary policy—a debate amplified recently when Elon Musk reposted a statement by Utah Senator Mike Lee advocating for the dissolution of the Federal Reserve.
In his original post, Senator Lee criticized Federal Reserve Chair Jerome Powell’s firm stance against resigning, even if requested by an incoming administration, specifically President-elect Donald Trump. Lee emphasized that the Federal Reserve’s independence from executive control diverges from the principles laid out in the U.S. Constitution. “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… Yet another reason why we should end the Fed,” Lee stated.
The senator’s criticism reflects a growing movement among “sound money” advocates and Bitcoin maximalists who argue that centralized monetary systems, particularly fiat currencies, are vulnerable to inflation and devaluation. As the U.S. national debt surpasses $35 trillion, many financial voices—ranging from state officials to federal lawmakers—are increasingly endorsing Bitcoin as a hedge against inflation.
Florida’s Chief Financial Officer, Jimmy Patronis, has already proposed Bitcoin investments within the state’s pension funds, aiming to preserve consumer purchasing power amid an escalating depreciation of the dollar. In a similar vein, Wyoming Senator Cynthia Lummis introduced the Bitcoin Strategic Reserve bill in July 2024, citing inflation and diminishing purchasing power as key motivators for the legislation.
President-elect Donald Trump, who will take office in January 2025, has added further momentum to the Bitcoin narrative. At the Bitcoin 2024 conference in Nashville, Trump hinted at the prospect of creating a national Bitcoin “stockpile” and even suggested using the cryptocurrency to help address the national debt.
This heightened attention to Bitcoin and critiques of the Federal Reserve signal an era where digital assets may increasingly be positioned as alternatives to traditional monetary policy solutions.
