Mike Novogratz Forecasts Existential Crises Unless Digital Dollar Is Created

The BTC bull Mike Novogratz forecasts existential crises for the United States unless the country moves ahead with creating a digital dollar so let’s find out more in our latest cryptocurrency news today.

The veteran investor, Mike Novogratz forecasts a dark scenario for the US. He is a huge fan of BTC and he noted that the US is now in a good economic position. The nation can face a huge competitive disadvantage unless it creates a digital dollar soon. He is the executive of digital merchant bank Galaxy Digital GLXY who underlined the strong value that the digital dollar could bring to the US in an interview with MarketWatch:

”To me it is an existential crisis, we need a digital dollar.”

The investor expressed his views over the current COVID pandemic and how badly it influenced the US market but also the global markets as well. he referred to the trillions of dollars of monetary and fiscal spending that was supposed to eliminate the pandemic aftershocks:

”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.”

With this statement, he referenced Hyman Minsky who exposed a view in the past where a period of distortions in the financial system ended quite badly. The existence of the digital dollar sounds extremely important after stock-market investors started warning about a surge in US inflation in the past weeks. During his interview, Novogratz claimed that in the US developing an e-dollar is still under research while China is already firing the first shots on the digital currency front. The biggest economy in Asia is getting plenty of support for its digital yuan and according to experts in the field, the new currency will be considered a weapon that the country can use to compete with the US and develop another economy.

Also, PayPal’s CEO Peter Thiel said that BTC could be used as a Chinese financial weapon against the US while Novogratz added that there’s zero evidence of the Chinese government buying more BTC referencing Thiel’s comments:

”Sometimes he likes to say things that are provocative.”