A Shift in Financial Power Dynamics
As cryptocurrency prices continue to soar, many are wondering what’s driving this surge. Veteran economist Judy Shelton believes it’s not just about Trump’s optimism, but rather a growing distrust of government-controlled money. “The decentralized finance movement reflects a lack of faith in government management of money,” Shelton stated at a recent conference.
Challenging the Status Quo
Shelton’s comments come at a time when bitcoin prices have skyrocketed to nearly $90,000, sparking excitement among crypto enthusiasts who hope for lighter regulations. As an economic adviser on Trump’s first transition team, Shelton has consistently spoken out against government bureaucracy and the Federal Reserve’s influence on the economy and asset markets.
A Critic of Centralized Power
Shelton’s nomination to the Fed in 2020 was met with intense criticism from lawmakers, largely due to her support for the gold standard. This system, where a country’s currency is pegged to the value of gold, has been a contentious issue in the past. The gold standard was abandoned during the Great Depression as people hoarded gold, leading to a shortage and ultimately forcing countries to adopt alternative systems.
The Rise of Fiat Money
Today, the US uses fiat money, a government-issued currency not backed by gold. Its value is derived from the government’s decree, making it an acceptable form of payment. Shelton warns that a central bank digital currency would be a monopoly, but encourages innovation in the private sector. She welcomes the incoming Trump administration’s openness to the cyber community and crypto.
A New Era of Financial Freedom
Shelton’s stance on decentralized finance reflects a growing desire for financial autonomy. As the crypto market continues to evolve, it’s clear that the traditional power dynamics are shifting. With the rise of alternative currencies, citizens are challenging the government’s control over money. This moral contract between citizens and the government is being rewritten, and Shelton believes it’s a healthy development.
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