Project 2025—a radical policy plan created by the right-wing Heritage Foundation think tank—has spread like wildfire in Washington D.C., fanned by the ailing Biden administration.
“Google Project 2025,” Biden’s official X account posted after former president and Republican 2024 hopeful Donald Trump claimed to “know nothing about Project 2025” and have “no idea who is behind it,” on his Truth Social.
The Project 2025 plan, detailed in a mammoth 920-page document that recommends huge overhauls of every government department, would abolish the Federal Reserve and create a system of so-called free banking or a commodity-backed replacement for the U.S. dollar—with some increasingly confident bitcoin would be more attractive than gold.
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The Project 2025 plan would abolish the Federal Reserve and reintroduce a gold standard—though many … [+]
“Under free banking, banks typically issue liabilities (for example, checking accounts) denominated in dollars and backed by a valuable commodity,” Paul Winfree, who served in Trump’s 2017 to 2021 administration, wrote in the Project 2025 plan.
“In the 19th century, this backing was commonly gold coins: Each dollar, for example, was defined as about 1/20 of an ounce of gold, redeemable on demand at the issuing bank,” Winfree wrote.
“Today, we might expect most banks to back with gold, although some might prefer to back their notes with another currency or even by equities or other assets such as real estate.”
The open-ended nature of free banking leaves the door open for banks to back their notes with bitcoin or another cryptocurrency, as “free banking leads to stable and sound currencies and strong financial systems because customers will avoid the riskier issuers, driving them out of the market,” Winfree wrote.
Meanwhile, a commodity-backed dollar would see the Fed back the notes it issues with “some hard asset like gold,” Winfree wrote, in a system designed “to rein in spending and inflation lest their gold reserves become depleted.”
Bitcoin, often referred to as digital gold due to its immutable nature and fixed supply, has seen its price surge over the last few years as it’s embraced by Wall Street and adopted by the country of El Salvador as an official currency.
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The bitcoin price has surged in recent years, leading to serious speculation it could eventually … [+]
Larry Fink, the BlackRock chief executive who leads the world’s largest asset manager that oversees some $9 trillion worth of assets around the world, said last year that bitcoin and crypto could “revolutionize finance,” setting of a chain-reaction that led to a fleet of spot bitcoin exchange-traded funds (ETFs) exploding onto Wall Street in January.
Last month, former billionaire and All In podcast “bestie” Chamath Palihapitiya predicted bitcoin could “completely replace gold” as countries adopt it—something he thinks could push it’s market capitalization toward gold’s $15.7 trillion.
Meanwhile, fears of a looming economic crash and the return of inflation led Jefferies’ analysts to say they expect the Federal Reserve will soon be forced to restart its money printer, potentially collapsing the U.S. dollar and fueling a bitcoin price boom to rival gold.
