Crypto investor and Bitcoin supporter Anthony Pompliano says the US government should launch a digital version of the US dollar in order to compete with China’s upcoming digital currency.
Pompliano, a partner at digital assets investment firm Morgan Creek Digital and a former product manager at Facebook, argues during an appearance on CNBC’s Squawk Box that the US should “tokenize the dollar immediately.”
“If you look at China, they’re tokenizing their currency. There are other countries that will follow. What’s going to happen is that there’s not going to be a competition between digital and non-digital currencies. Every currency will be digital.
What we’re going to have is a competition of monetary policy. And if all of a sudden China has a digital yuan and [the US] doesn’t have a digital currency, it will be much more accessible for people to buy the Chinese yuan in other parts of the world than the US dollar.
And so you might see higher levels of adoption of the Chinese yuan than the USD. So we can tokenize or digitize the dollar fast and drive that adoption globally. [Then,] we’ve got a chance at keeping the USD as a global reserve currency.”
According to a statement by People’s Bank of China (PBOC) governor Yi Gang, made earlier this week, there is no set timetable on when China, which has been locked in a trade war with the US, will launch its new digital currency.
— Squawk Box (@SquawkCNBC) September 27, 2019
Meanwhile, Mark Yusko, Pompliano’s partner at Morgan Creek, recommends buying Bitcoin despite its extreme day-to-day fluctuations.
In a recent interview with CNBC’s “Fast Money,” the CEO and chief investment officer at Morgan Creek notes that Bitcoin’s daily price “doesn’t matter.” Yusko adds that Bitcoin’s network, while still relatively small, has been increasingly adopted since it was introduced in late 2009.
Yusko compares Bitcoin’s performance to Amazon stocks, noting that “the price of any asset fluctuates.”
Earlier this year, Yusko predicted that the flagship cryptocurrency might reach $30,000 before experiencing a major correction. At the time, Bitcoin was trading around $12,000.
The digital asset has subsequently dropped, hitting $7,944.33 on September 26, its lowest level since June, and is currently trading just over $8,000.