Novogratz doubts the US Bitcoin strategic reserve proposal but supports embracing digital assets for future financial competitiveness.
Michael Novogratz, the founder of crypto investment firm Galaxy Digital, has expressed doubt about the possibility of the US establishing a Bitcoin strategic reserve. The proposal, put forward by President-elect Donald Trump, has gained attention in the cryptocurrency community. However, Novogratz believes it is unlikely to happen.
In an interview with Bloomberg, Novogratz stated that he still considers the proposal a “low probability.” He said that it was very hard to come up with a supermajority in the current political setting, especially the situation in the Senate. Even though the Republicans have control, Novogratz pointed out that a supermajority is needed for such major pieces of legislation to pass.
However, Novogratz, who expressed doubt about the Bitcoin reserve, said the US must look at Bitcoin opportunities. He suggested that the US should not sell the current Bitcoin it owns but should buy more. According to Novogratz, this could possibly put the US at the forefront of the burgeoning technology and digital asset markets.
Novogratz Backs Digital Assets, But Questions Bitcoin Reserve Proposal
Novogratz also insisted that the US should establish itself as a technological and digital currency power. He emphasized that adopting digital assets could redesign the concept of world finance and ensure the country’s competitiveness in the new financial environment.
Trump’s recent presidential victory has also boosted the cryptocurrency market. Bitcoin hit a record high above $93,000, rising by over 30% in value last week. This growth has also helped the overall digital asset market surpass the level before the pandemic. The increase in Bitcoin’s value is due to investors’ growing confidence in this new type of asset.
Notably, where Trump used to be a critic of cryptocurrencies, he has since changed his tune. In his first term, he described Bitcoin as a scam, and now he is an advocate of cryptocurrencies. His family has even established a decentralized finance project—World Liberty Financial (WLF)—which also indicates their increasing concern about crypto.
Lastly, Novogratz supports the idea of cryptocurrencies but doubts the Bitcoin strategic reserve plan. With the expansion of the digital asset market, the US could become one of the main players in this market. It is clear that the future of finance is heading increasingly towards the digital world, and the prospects for development in this field are vast.
