Posted 1 year ago | by Ben Armstrong
Novogratz Says Transition to Crypto Vital for USA
While the US is still fumbling about uncertain rules for the crypto industry, China is forging ahead with it is crypto and blockchain plans for a digital future.
Several nations, mostly in Asia, have started research and development on their central bank cryptocurrencies. Meanwhile, the US is getting left behind, especially if the recent Libra/Congress fiasco is any guide. The world's largest economy refuses to transition to the digital world, and one crypto major has taken a stand.
Mike Novogratz, Galaxy Digital founder and hedge fund manager, declared that the US will lose the crypto race if it keeps protecting its fiat currency.
“And if we don’t transition to a digital world that will change. We are way behind on a crypto USD. China is coming. And coming fast. Their President just publicly claimed his support to all things blockchain. We risk losing our reserve status”
Get Into Crypto or Lose Out
Anthony Pompliano, Morgan Creek co-founder, added that future investment portfolios will be completely digital.
“In the future, portfolios will be 100% digital assets. Investors will have the same asset allocations, but they’ll hold digital stocks, digital bonds, digital currencies, and digital commodities.”
A couple of weeks ago, President Xi of China publicly supported crypto and blockchain, following it that is the bullish signals of crypto. It caused a massive surge in BTC and crypto markets. Blockchain and crypto momentum are all coming from China, and Aisa more generally at the moment.
A Tricky Situation
The move from China, which is a regime that has been trying to quash all crypto trading and activity for the past two years, took the form of a state-media headlined an article explaining Bitcoin to the masses.
Crypto mining was removed from an official list of industries that China’s National Development and Reform Commission (NDRC) intended to limit last week. Recent research also says that Asian exchanges are dominating crypto-asset flows, as the region turns into the industry leader for potential US Dollar destruction.
The US economy is facing a mounting national debt, currently over $23 trillion USD and rising. If the US decided to pursue a devaluation of the dollar, things could get interesting. There is no way to tell where this story will go, but it looks like China might be overtaking the US, and the West more generally, when it comes to digital assets.