China is on its way to becoming the first country to launch a state-backed global digital currency and Michael Novogratz, a prominent billionaire, has commented on that. Novogratz believes that the U.S. reserve status may be threatened by China and the crypto revolution. He affirmed that China is already ahead of the U.S. in several areas such as fintech, so the country has some catching up to do.
The president of China, Xi Jinping, has recently announced that blockchain could be used to help the yuan to become a global currency, so it is important for the U.S. government to consider how much of a threat this can be. Novogratz claimed that if America does not transition to the digital world soon, it may lose its place to China.
In a move to fast-track the development of a blockchain, the Chinese central bank has recently signed a contract with Huawei. The so-called threat is real and people have pointed out that the new digital currency will be launched in the beginning of 2020.
The CEO of Facebook, Mark Zuckerberg, has recently talked about this, too. In an effort to convince the regulators that they should approve Libra, he mentioned China’s new digital currency and claimed that Libra could be used by the country to resist its influence.
In this context, it is clear that the pressure for the U.S. to launch its own digital currency grows. People such as Rohit Chopra from the U.S. Federal Trade Commission have already urged the Federal Reserve to speed up the development of the technology. Will the project be completed soon enough? No one knows.