Veteran investor Mike Novogratz said that the U.S. has things under control but will be at a big disadvantage if it doesn’t develop its own digital dollar soon.
The move, he said, would be particularly crucial as China has made major progress on the virtual currency front.
Novogratz, chief executive of digital merchant bank Galaxy Digital, underscored the value that a digital greenback could bring to the government during a Friday interview with MarketWatch.
“To me it is an existential crisis, we need a digital dollar,” Novogratz said.
Giving the U.S. a run for its money
China’s digital yuan has long been perceived as not simply the evolution of currency for the country but also a strategy to compete with the U.S. and other major economies.
The electronic yuan now being minted by China is controlled by its central bank, which will issue the new digital currency, the Wall Street Journal said.
Novogratz has warned that economic turmoil can occur as bitcoin (BTC) continues with its uptrend and the U.S. dollar plummets.
“I don’t want to see the world fall apart. I don’t want to see the dollar sells way off, and bitcoin rockets… because it’s gonna be total chaos on the streets, but that’s what we are seeing,” CoinJournal quoted Novogratz as saying.
Strong crypto adoption by China
China’s adoption of a digital yuan has lent some support to the broader digital-asset complex, exemplified by bitcoin. At last check, the crypto was trading at $58,477 on CoinDesk.
According to some experts in the field, China’s push to establish a digitized currency is a weapon that it can use to compete with the U.S. and other developed economies.
Meanwhile, Novogratz also estimated that 1% of the world’s total wealth would be allotted into cryptocurrency by the end of the year. Currently, the U.S. wealth is roughly between $130 trillion to $140 trillion, while global wealth is at $400 trillion.
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Source: https://bitcoinerx.com/blockchain/bitcoin-bull-mike-novogratz-sees-financial-chaos-unless-u-s-makes-its-own-digital-currency/
