Billionaire investor and former hedge fund manager Mike Novogratz is saying that the United States is going to seriously fall behind granted it does not develop a digital dollar in the immediate future.
Mike Novogratz: We Need a Digital Dollar
Mike Novogratz has always been a huge bitcoin and cryptocurrency advocate, and he feels that in many ways, digital assets will be the future of money. Thus, he is urging the United States to take control of the financial reins. He feels the country is falling behind, and risks losing its competitive edge to nations like China, which already has a digital yuan in play.
In a recent interview, he claims:
To me, it is an existential crisis. We need a digital dollar.
For the most part, the U.S. has been rather slow when it comes to implementing up-to-date crypto regulation. As a result, the country has lost its place in the division of financial products like bitcoin and crypto-based exchange-traded funds (ETFs). Recently, its neighbor to the north Canada became the first country to unveil such products, and Hester Pierce of the Securities and Exchange Commission (SEC) is claiming that it was a mistake for her agency to act so slowly.
But the big clincher, in this case, is the digital yuan, which has already been in play for several months in China. While the currency is not available to the general public quite yet, it has undergone several testing phases and been used by select groups of people as regulators prepare it for national utilization. The country is moving ahead of the U.S. in terms of financial technology, and Novogratz does not want to see the situation escalate any further than it already has.
If our fiscal and monetary policy starts looking like it’s from a Banana Republic… you are going to run into some Minsky moment where confidence breaks down.
One of the reasons for the digital yuan in China is allegedly because government officials do not want to see any further competition to its monetary system. Thus, the country has outlawed bitcoin and many activities relating to cryptocurrency such as initial coin offerings (ICOs).
Can Bitcoin Be Weaponized?
For some – such as angel investor Peter Thiel – this is simply a front for a hidden operation. In a recent interview, Thiel claimed that bitcoin could potentially be used by the Chinese as a financial weapon against the United States, though Mike Novogratz believes this is a ludicrous statement, and says there is no evidence out there to suggest that China is planning this.
Novogratz further said that Thiel is one who likes to “say things that are provocative,” and ultimately dismissed his words as a hoax. He says there is nothing suggesting that the Chinese government is buying BTC, much less working on crypto-based weapons against its enemies.