Mike Novogratz, the CEO of Galaxy Digital and bitcoin bull has warned that the United Statesâ€™ failure to have its own digital currency could be an â€œexistential crisis.â€ However, the CEO says the countryâ€™s fate is still in its hands. Novogratz made these comments a few days after former U.S. Secretary of State, Mike Pompeo suggested that the United States is not going to have a digital dollar anytime soon.
Distortions in Financial System
Still, Novogratz tells an interviewer that the United Statesâ€™ success on this front will be dependent on the way the country manages its fiscal and monetary policies. He said:
According to the report, a Minsky moment, which was espoused by the late Hyman Minsky, suggests â€œthat a period of distortions in the financial system eventually ends very badly.â€ The U.S. has injected trillions of dollars into its economy and reports suggest more spending is being planned. However, some investors now fear this massive spending will cause the countryâ€™s inflation rate to rise.
Bitcoin Not a Chinese Financial Weapon
In the meantime, Novogratz also took time to push back against Peter Thielâ€™s recent claims that bitcoin is being used as a financial weapon by China. According to Novogratz, there is â€œzero evidence of the Chinese government buying bitcoin.â€ Further, the CEO dismisses Thiel as someone who â€œlikes to say things that are provocative.â€
As reported by Bitcoin.com News, Thiel suggested at a recent seminar that China was using bitcoinâ€™s reserve currency status to undermine the U.S. In addition to bitcoin, other critics also point to Chinaâ€™s rollout of the digital yuan as another way the Asian country is planning to â€œcompete with the U.S. and other major developed economies.â€
What do you think about bitcoin bull and billionaire Mike Novogratzâ€™s opinion about the digital dollar and a possible â€œexistential crisis?â€ Let us know what you think about this subject in the comments section below.
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