Novogratz Talks to Bitcoin’s Cold War and Notion of US and China’s Crypto-Renminbi (RMB) Competition


“America could lead the way towards the transition to a Digital Currency Reserve”, This is according to a reference made by the well known Mike Novogratz to an article that was written by Brian Brooks.

Who went on to say that China may very well be the rival participant to the United States on this front. The People's Republic may, in fact, be heading towards the creation of its own crypto-based Renminbi {RMB] making one of the only global reserve currencies with a digital backing.

At this moment in time, how is the US faring against its eastern rival? Not great according to the CLO of Coinbase, Brian Brooks, who muses that America is simply not keeping up with the pace on the cryptocurrency front, especially now with dire times coming up in this area, with inflation climbing ever upwards. It has its eyes too much on pushing for regulation when it could be working to become a transnational currency that could counter this inflation problem.

Brooks went on to mention how the US had come on to claim a great deal of control over the global markets thanks to its support provided to the internet, contributing to the wider internet revolution that allowed for the ilk of Facebook and Google to explode, bringing jobs and the economy ever upwards in the process.

The specific article, which was published in the New York Times mused:

“The greenback’s share of global central-bank reserves has declined in nine of the past 10 quarters… The slide is hardly new: It began a decade ago when European leaders attempted to replace the dollar with a euro-based “basket” of currencies as the common global reserve.”

Continuing on from this, Brooks continued on to discuss how blockchain technology, which allows for cryptocurrencies to be a feasible system, could represent the next golden goose which can be the difference between a resurgent American economy, and one that steadily loses steam to more dynamic rivals.

We can certainly see the latter through countries like Malta, Switzerland, Singapore and Japan which have been driving forward in the adoption and application of blockchain technology, riding the powerful wave conjured up by digital assets.

While China has taken on a more hostile approach towards Cryptocurrency, blockchain is where it shows that it's taking the initiative, setting up regions of the country to serve as international innovation labs while seizing upon a large number of blockchain patents.

Novogratz, who has gained a great reputation as ‘the Guru of Bitcoin‘, commented on how dire this matter was to the subject of the US economy. Were it to spend more time on adopting and putting cryptocurrencies to use, it would save itself a great deal of misery in the long run. He commented:

“This is an important point. If China creates a crypto RMB that could become the payment of choice in lots of the developing world. If I was President Xi, and in a Cold War with the USA, I would be racing to do just that.”

While Novogratz is well known for his cutting opinions, he can't help but draw in those that disagree with him quite strongly on the subject of a state-issued cryptocurrency.

One such example is the following rebuttal:

“The issues that coincide with any state centralized economy don't just dissapear when you make a state-issued cryptocurrency. The same problems just piggyback over to the digital version. And aside from governments deciding to outlaw cryptocurrency, this can't stop the fact that a country without a sound money will only end in failure.”

One other user went on to rebuke:

“We need to spend less time misleading people by saying a currency like Digital RMB would be a cryptocurrency, when in reality, it isn't.”

A final commenter added the following:

“Is this some kind of covert success? It would be a really sad state of affairs if other countries passed us by,  simply because the United States was content with stifling innovation by slapping arbitrary regulations on it. If you can't change or control something then slow it down. An old motto in the USA.”

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