Founder and CEO of Galaxy Digital, Michael Novogratz, is of the feeling that if the US does not adapt to digital finance, then it may be left behind. He also said that countries like China are miles ahead with regards to acceptance of fintech and support for it and this could lead to change in the U.S. dollar reserve status.
In a recent tweet, Novogratz mentioned how the US could lose out on being the leader in the international financial domain just by not opening up to the idea of cryptocurrency. He indicated that the best contender for this position could be China because of their promptness in adapting innovative technologies in the financial sector. Novogratz mentioned that he feels that the U.S. risks losing the reserve status of its currency due to this.
China is developing its very own state-backed cryptocurrency. Their digital token will be backed by Yuan, which means it will become the first digital token that is sponsored by a country; therefore, it will gain the trust of people worldwide. Whereas, on the other hand, Facebook is struggling to launch its Libra currency, which was touted as the biggest thing to happen in the crypto world, due to stringent regulations of the US authority.
The president of China has publicly shown his support for blockchain and also has relaxed rules and regulations for the fintech. President Xi Jinping is also of the opinion that blockchain held the key for the futuristic invention of core technologies, which could change the economic scenario. On the contrary, the U.S. president publicly showed his dissent for digital tokens; President Donald Trump went to the extent of saying that these currencies are easy for illegal transactions between antisocial elements.