Mike Novogratz, CEO of Galaxy Digital and Bitcoin Bull, has warned that the US’s failure to have its own digital currency could be an “existential crisis”. However, the CEO says the country’s fate is still in his hands. Novogratz made these comments a few days after former Secretary of State Mike Pompeo suggested that the United States would soon run out of digital dollars.
Distortions in the financial system
Still, Novogratz tells an interviewer that the United States’ success on this front will depend on the way the country manages its fiscal and monetary policies. He said:
If our fiscal and monetary policy looks like it comes from a banana republic … you will get into a Minsky moment when confidence breaks.
According to the report, a Minsky moment advocated by the late Hyman Minsky suggests that “a period of distortion in the financial system will end very badly”. The US has injected trillions of dollars into its economy, and reports suggest that more spending is planned. However, some investors fear that this massive spending will lead to a spike in the country’s inflation rate.
Bitcoin Not a Chinese financial weapon
In the meantime, Novogratz also took the time to defend himself against recent claims by Peter Thiel that Bitcoin is being used by China as a financial weapon. According to Novogratz, there is “no evidence that the Chinese government is buying Bitcoin”. In addition, the CEO dismisses Thiel as someone who “likes to say provocative things”.
As reported by Bitcoin.com News, Thiel suggested at a recent seminar that China is using Bitcoin’s reserve currency status to undermine the US. In addition to Bitcoin, other critics point to China’s adoption of the digital yuan as another way the Asian country plans to “compete with the US and other major industrialized nations.”
What do you think of the opinion of the Bitcoin bull and billionaire Mike Novogratz about the digital dollar and a possible “existential crisis”? Let us know what you think on this matter in the comments section below.
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