OKEx CEO Says Bitcoin or Libra is Fit as ‘Super-Sovereign’ Money
Recently, OKEx’s CEO talked about the international economy advantages developed nations to neglect those worse off. Such an imbalance is due to the system’s reliance on the USD.
Jay Hao noted that the U.S. Federal Reserve and other central banks are currently unable to foster growth in response to a worldwide pandemic. Hao said “QE Infinity” is not realistic and archaic monetary manipulations will not work against the current crisis.
He believes that the additional liquidity cannot restart production due to the current social isolation and firms simply are not producing anything. He suggested governments’ support for the existing economic activities as they continue to enforce robust lockdown measures, instead of printing more cash. He thinks this approach is the only means of restoring confidence in the market.
According to Hao, the United States economy is not the main sufferer of the widespread money printing that seems to be quantitative easing. Being a sovereign currency, the USD comes up with a situation of “intangible exploitation,” thereby bringing about deglobalization movements, rising populist groups, as well as massive wealth imbalances globally.
Due to the international monetary system based around one sovereign currency (USD), the world’s balance of power can only be weighted towards the U.S. Hao thinks the way out is to restart with another “super-sovereign” currency without ties to one country but utilized worldwide.
He thinks that Bitcoin and Libra are fit to achieve this. Bitcoin is more appropriate because of its fixed supply. However, Hao said the main challenge is Bitcoin’s volatility. As for Libra, it is pegged to a basket of currencies and characterized by stable price; hence, it could be a good medium of exchange. The CEO is looking forward to further efforts towards the creation of a currency that does not have the kind of sovereignty enjoyed by the USD.
Featured image courtesy of OKEx. Source: Cryptopress.