Mike Novogratz, CEO of Galaxy Digital and Bitcoin bull, has warned that the failure of the US to have its own digital currency could become an existential crisis. However, the CEO says the fate of the country is still in her hands. Novogratz made the comments days after former US Secretary of State Mike Pompeo suggested that the US will not have a digital dollar in the near future.

Disruptions to the financial system

However, Novogratz said in an interview that the success of the US on this front will depend on how it conducts its fiscal and monetary policies. He said:

When our fiscal and monetary policies start to look like banana republic policies… you get into a kind of Minsky moment where confidence is lost.

According to the report, the moment taken by the late Hyman Minsky suggests that the period of disruption in the financial system is ultimately very bad. The United States has invested trillions of dollars in its economy and apparently plans to increase its spending. However, some investors now fear that this massive spending could lead to higher inflation in the country.

Bitcoins are not Chinese financial weapons

Novogratz also took the time to refute Peter Thiel’s recent claims that bitcoin is being used as a financial weapon by China. Novogratz said there is no evidence that the Chinese government is buying bitcoins. Next thing you know, the CEO is firing Thiel as someone who likes to say provocative things.

According to Bitcoin.com News, Thiel suggested at a recent seminar that China is using bitcoin’s reserve currency status to undermine the United States. In addition to bitcoin, other critics point to China’s proliferation of the digital yuan as another way for the Asian country to try to compete with the United States and other major developed economies.

What do you think of billionaire and bitcoin bull Mike Novogratz’s views on the digital dollar and a potential existential crisis? Let us know what you think in the comments below.

Photo credit: Shutterstock, Pixabay, Wiki Commons

Denial: This article is for information only. It is not a direct offer or invitation to buy or sell, nor is it a recommendation or endorsement of a product, service or company. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author shall be liable, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services referred to in this article.