What if the Fed disappeared?

What if the Federal Reserve were abolished?

The Heritage Foundation’s Project 2025 explicitly proposes dismantling the Fed and replacing it with a free-market monetary system. Meanwhile, Trump-affiliated WLFI (World Liberty Financial Inc.) is launching a stablecoin called USD1, currently backed by U.S. treasuries.

But here’s where it gets interesting:

• WLFI holds ETH, WBTC (wrapped Bitcoin), and some more.

• Ethereum is the programmable layer powering DeFi, tokenized assets (RWAs), and staking infrastructure.

• Bitcoin, via WBTC, could become part of a future collateral structure – possibly alongside gold.

In this vision, Ethereum becomes the financial infrastructure layer. Bitcoin could evolve into a digital monetary reserve, especially if stablecoins like USD1 shift from purely fiat-backed models to hybrid reserves (treasuries + gold + BTC).

Scenario:

USD1 starts as 100% treasury-backed (like USDC) – safe, regulated, stable.

Gradual integration of gold or BTC to align with “hard money” ideology (Heritage/Trump), gaining trust from a broader audience.

Eventually, USD1 becomes a multi-asset-backed stablecoin:

• 50% Treasuries

• 25% BTC

• 25% tokenized gold

That’s no longer just a stablecoin. That’s an alternative monetary base.