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Bitcoin or Digital USD Could Save Global Economy Since Weakening Dollar Is World’s Only Hope: Opinion

  • Yuri Molchan
    📰 News

    A perfect soil for a BTC rise would be a major financial crisis, some experts believe, and now CNBC says that weakening USD could be the only hope for the global economy

Bitcoin or Digital USD Could Save Global Economy Since Weakening Dollar Is World’s Only Hope: Opinion
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Contents

When talking to CNBC recently, the crypto expert and angel investor Anthony Pompliano suggested that the US government should turn the USD into a digital form immediately. His major argument was that in the near future all national currencies will be digital. China is already working on its central bank-emitted digital money.

If the US does not have a digital dollar, people will be more attracted to buying ‘China Coin’, he believes. He also said that the ‘digital yuan’ in that case would be wider adopted.

A financial crisis could be good for Bitcoin, experts say

In his earlier tweets, Pompliano and other crypto industry leaders stated that the worse is the situation with the current global economy due to central banks’ policy, the higher chances will be that investors and regular users will choose to go into Bitcoin.

Meanwhile, Steen Jakobsen, the chief economist and CIO at Saxo Bank, has recently stated to CNBC that “weakening the dollar is the last throw of the dice in rescuing the global economy”.

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Monetary policy of the FED has failed, says Jakobsen

The economist believes that the recent interest rate cuts made by the Fed Reserve and the recent QE measures are worsening the current situation in the global economy since the US dollar is the global reserve currency.

Monetary policy has reached the end of a very long road and has proven a failure.

The ECB also followed this path in the summer, cutting the interest rate by 10 basis points down to -0.5 percent and launching QE.

In a global system of failed monetary policies and a long and difficult path to fiscal policy, there is only one other tool left in the box for the global economy and that is lower the price of global money itself: the U.S. dollar.

Presently the US state debt totals $240 trillion around the globe, which is approximately 240 percent of global GDP. The economist says that a very large part of this debt is denominated in the USD and if the USD gets stronger this will not be good since the USD is a global safe-haven asset.

Jakobsen clarified his point by saying:

If the dollar rises too much, the strain in the system increases: not only for U.S. exports, but also for the emerging market with its high dependence on USD funding and export machines.

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As the recent Fed’s dollar printing measures took place, Anthony Pompliano and other experts suggested that the Bitcoin price would surge.

Bitcoin is used in crisis-stricken countries

Countries with poor economic situation and hyperinflation have been turning to crypto recently. The brightest example is Venezuela. In 2018, the country attempted to solve the problem of its hyperinflation by launching its own oil-backed crypto, Petro.

However, now its citizens prefer to use Bitcoin and Dash for everyday purchases. As reported by U.Today recently, the country’s government even considers buying Bitcoin and Ether to form its international reserves.

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About the author

Yuri is a journalist interested in technology and technical innovations. He has been in crypto since 2017. Believes that blockchain and cryptocurrencies have a potential to transform the world in the future. ‘Hodls’ cryptocurrencies. Has written for several crypto media. Currently is a news writer at U.Today.

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Ex-Congressman Says Fed Should Not Play With Own Cryptocurrency

  •  Denis Sinyavskiy
    📰 News

    Former US Congressman Ron Paul shares his thoughts on the possible creation of Fed’s own cryptocurrency

Ex-Congressman Says Fed Should Not Play With Own Cryptocurrency
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Former US Congressman Ron Paul spoke on Fox Business and said that the Fed should not think about creating its own cryptocurrency.

Fed’s Crypto: To Be or Not To Be?

Rumors have been circulating for the past few months about the Fed possibly creating own cryptocurrency. It is expected that a digital coin would become a competitor to its counterparts on the market, and may even replace fiat money. President Patrick Harker, President of the Federal Reserve Bank of Philadelphia, commented on such rumors at a recent conference:

“It is inevitable. I think it is better for us to start getting our hands around it.”

However, there has not been no official follow-up by the Fed towards a crypto exchange. While proponents of this idea believe such innovation is necessary, it is expected that the exchange could stop the current delays involving US bank transfers.

What do the opponents think about the Fed's own cryptocurrency?

The idea of ​​creating the Fed's cryptocurrency has its opponents. This includes Ron Paul, who believes that the Fed is in a better position to stay away from digital coins and allow the private blockchain sector and payment platforms to resolve this discussion in real-time. What the Fed plans to do next is unclear, but the central bank may still enter the game.

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About the author

Starting with a simple interest in cryptocurrency, over the past two years, Denis has worked in a cryptocurrency fund and become an author with an analytical bias. His engineering degree helps with the analysis of the technical part of the cryptocurrency market. As a fan of cryptocurrency, Denis believes that the blockchain technology is the future.

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