The financial world buzzed this week with speculation about central banks, like the Fed, eyeing cryptocurrency assets. While this may remains a rumor, and probably many levels of government approval, it sparks a bigger question: In an uncertain monetary landscape, why consider volatile digital assets before investing in our own economic engines?
The Crypto Distraction
Cryptocurrencies offer intriguing tech and future potential, but they lack the real economic tether of domestic equities—direct links to productivity, jobs, and innovation. Buying Bitcoin bets on digital scarcity. Buying into the S&P 500, Nasdaq, or Russell 2000 via ETFs fuels America’s economic backbone.
The Economic Alignment We’re Missing
Imagine a dollar tied to America’s top companies. Saving invests in our future; spending boosts the firms backing our currency. Globally, Canada could link to the TSX, the UK to the FTSE, Japan to the Nikkei—each currency reflecting its nation’s productivity.
This creates a cycle crypto can’t touch:
- Citizens gain from national success
- Domestic spending gets a financial edge
- Currency stabilizes with real output
- Wealth-building opens to all
- Beyond Protectionism
Tariffs raise prices and tensions. A currency tied to equities rewards domestic strength without punishing trade—a carrot, not a stick.
Environmental Angle
Local economic focus cuts shipping emissions. Equity-backed currencies sidestep crypto’s energy-intensive mining.
Implementation Realities
Shifting systems is tricky, but even a small reserve tied to market indices could realign incentives.
The Question Remains
Why prioritize volatile, unproductive digital assets over the companies driving our success? The answer might reflect monetary priorities more than economic strategy.
What do you think? Should central banks back currencies with domestic equities instead of gold or crypto? Share your take below!
Posted in LinkedIn by Charles Villeneuve