Hillary Clinton’s criticism that cryptocurrencies could supplant the US dollar as the global reserve currency has elicited a response from the cryptocurrency industry. Mike Novogratz, the CEO of Galaxy Digital, maintained that wasteful spending by both U.S. political parties is the only thing that might threaten the US dollar’s status as a reserve currency. Elon Musk, meanwhile, criticized the American government for weaponizing the currency and said, “We have overplayed our hand in weaponizing the dollar.” That was a stupid move.
The Reserve Currency Status of Bitcoin and the US Dollar
Resurfacing on social media site X over the weekend, a video of former Secretary of State Hillary Clinton discussing cryptocurrencies in 2019 sparked a new round of discussion among the cryptocurrency community. The video sparked reactions and condemnation from a lot of people in the cryptocurrency sector, even though it was from a panel discussion from November 2019.
Clinton added, “I hope nation-states pay greater attention to the rise of cryptocurrency because it has the potential to destabilize nations, perhaps starting small but moving much larger, and to undermine currencies and the dollar’s role as the reserve currency. It looks like a very interesting, somewhat exotic effort to literally mine new coins in order to trade with them.”
Galaxy Digital CEO Mike Novogratz responded to Clinton’s claim on X Saturday, saying that bitcoin has the ability to dethrone the US dollar as the global reserve currency.
Spending irresponsibly by BOTH parties is the only thing that may devalue the dollar as a reserve currency. The largest budget problem I can remember has been brought on by Trump and Biden, who have normalized enormous deficits. Don’t hold Bitcoin responsible. It serves as a report card for financial accountability.
Attorney John E. Deaton stated, “Anything they can’t control is a threat to the incumbents who have been in power for decades.” One asset is bitcoin. Exactly. Individuals in America are entitled to possess property. The greatest reason to hold bitcoin is the fear these politicians, who support government regulation of private property rights and lifestyle choices, have for the cryptocurrency. Heaven forbid that the world’s most valuable asset should be accessible to the average person.
In response to Clinton’s admonition, Brian Morgenstern, chairman of Riot Platforms’ public policy department, said, “No, $2T deficits undermine the dollar.” Dollar depreciation results from government spending 38% more than it takes in. On the flip side, by linking the dollar to global asset values and fostering cross-border efficiencies, Bitcoin and other commodities might strengthen the currency.
Vladimir Putin, the president of Russia, talked about the US dollar losing its hegemony last week. He asserted that by employing the dollar as a political weapon, the United States is actively destroying the currency. Elon Musk, the CEO of Tesla, posted a response to Putin’s remarks on X Friday.
We have gone too far in using the dollar as a weapon. It was a foolish action.
What are your thoughts on the reactions from the cryptocurrency community to Hillary Clinton’s warning that cryptocurrency might threaten the role of the US dollar as a reserve currency? Tell us in the space provided for comments below.