Elon Musk and Edward Snowden Call for Decentralization Amid Concerns Over Federal Reserve and Surveillance
Elon Musk recently voiced support for a call to abolish the U.S. Federal Reserve, amplifying a growing movement that questions centralized financial systems.
Musk shared a tweet from Utah Senator Mike Lee, who criticized the Federal Reserve’s structure and its autonomy from executive oversight.
Lee argued that the Federal Reserve Chair, Jerome Powell, had overstepped his role by refusing to step down even if requested by the incoming President, Donald Trump. Lee contended that the Federal Reserve exemplifies a deviation from the Constitution’s design for executive oversight, emphasizing that it should be under presidential direction.
This viewpoint is popular among “sound money” advocates and Bitcoin maximalists, who argue that centrally managed fiat currencies contribute to inflation and devaluation.
The sentiment against centralized banking is growing in tandem with rising U.S. national debt, which recently surpassed $35 trillion. As concerns about inflation intensify, Bitcoin has gained popularity as a potential hedge against the devaluation of the dollar.
Figures like Florida CFO Jimmy Patronis are urging for investment in Bitcoin to protect consumer purchasing power, particularly in state pension funds. Wyoming Senator Cynthia Lummis also introduced a bill that aims to establish a Bitcoin Strategic Reserve, highlighting inflation as a driving concern. Even President-Elect Donald Trump hinted at plans to incorporate Bitcoin into national strategy, mentioning a possible Bitcoin “stockpile” to address national debt concerns during the Bitcoin 2024 conference.
Meanwhile, in Bangkok, Thailand, privacy advocate Edward Snowden addressed similar concerns about centralization but focused on its role in technology and surveillance. During his talk at the Redacted conference, Snowden warned of the implications of artificial intelligence (AI) for privacy and civil liberties.
He emphasized that decentralized systems offer a vital counterbalance to the power of corporations and governments to conduct mass surveillance. AI, Snowden argued, enables real-time analysis of vast amounts of personal data, posing significant risks to individual privacy. He cautioned that such technology could be used to identify and monitor individuals perceived as “anomalous,” leading to new forms of surveillance.
Snowden also spoke about the influence of venture capital (VC) on blockchain projects, specifically pointing to Solana as an example of how large financial backers could limit a network’s independence. While acknowledging Solana’s rapid growth, he warned that heavy VC involvement could make the network beholden to investors’ interests.
Snowden noted a recent case in which Andreessen Horowitz (a16z), a venture capital firm, used its significant voting power to influence governance decisions on Uniswap, underscoring the control that large stakeholders can exert on “decentralized” projects.
Advocating for open-source technologies, Snowden highlighted that such tools are crucial for individual empowerment in a world increasingly shaped by centralized power. He urged the audience to embrace open-source models, suggesting they offer users autonomy and deeper understanding of blockchain technology. For Snowden, open-source solutions represent a path to maintaining personal freedom in the face of growing surveillance capabilities.
