On Friday (9), the CEO of Galaxy Digital said that the US government needs to accelerate the issuance of the digital dollar.
In an interview with MarketWatch, Mike Novogratz reasoned that the United States is at a disadvantage in the race for state-owned digital currencies (CBDC).
As an example, China is already conducting international tests of its digital yuan.
“We need a digital dollar”
In the face of the economic crisis and the movement of China with its CBDC, Novogratz is emphatic.
“In my view, it is an existential crisis. We need a digital dollar, ”he said urgently.
The CEO of the cryptocurrency manager believes that the US can control the future of CBDC, if government support is enough.
However, Novogratz says that Janet Yellen and Jerome Powell need to deal with the consequences of the trillion dollar printing.
Both are, respectively, secretary of the Treasury and president of the United States Federal Reserve System (Fed).
In March, a $ 1.9 trillion stimulus package was awarded to combat the economic crisis caused by the pandemic.
Next week, the government is due to discuss another monetary plan. This time, Joe Biden’s interest is to add another $ 2.4 trillion to the infrastructure.
Apparently, China’s pioneering role in issuing the first CBDC is a cause for concern for the United States.
For Novogratz, the delay in monetary policies could take away the credibility of the digital dollar.
“If our fiscal and monetary policy starts to look like a‘ Banana Republic ’(…) Trust collapses,” he warned.
Novogratz takes the opportunity to say that there is no evidence that the Chinese government has turned Bitcoin into a “weapon”.
The statement serves as a response to the recent statement by billionaire Peter Thiel.
Investors are concerned about rising inflation in the United States. The Dow Jones Industrial Average and S&P 500 indices fluctuated considerably.
As a way to protect their assets, institutional investors are exposing themselves to Bitcoin (BTC).
Consequently, BTC exceeded US $ 1 trillion in market value and is still showing a strong moment.
Read also: Veteran teaches when to buy cryptocurrencies in the fix
Read also: 5 cryptocurrencies outperformed Bitcoin and Ethereum in the first quarter
Read also: Shopify CEO explores integrating DeFi with e-commerce