OKEx CEO Tags Bitcoin and Libra the Super-Cryptos
Bitcoin and Libra could be the keys to rectifying the current global economic imbalance. That is, according to OKEx CEO Jay Hao. Mr. Hao affirms that the USD continues to have a stranglehold over the world economy. Thus it skews the balance of world power in favor of the developed nations.
Mr. Hao proposes that the global economy needs a fresh start. Further, to successfully do this, we will have to ditch the USD as the standard currency. In its stead, he suggests we adopt a ‘super sovereign currency with global appeal. To him, Bitcoin and Libra fit the bill.
He argues that Bitcoin’s fixed supply makes it the ideal candidate. That said, its volatility is a major concern. Libra could be a good substitute as it has the backing of several stable currencies.
The CEO also expressed his excitement over the efforts to develop a currency to replace the USD.
Ineffectiveness of “QE Infinity”
Furthermore, the OKEx CEO noted the U.S. Federal Reserve’s and other central banks’ inability to spur growth in response to the current pandemic. He asserts that“QE Infinity” is an unrealistic and archaic monetary manipulation ineffective in the current crisis.
To him, the additional liquidity will not reignite production. He alleged that the current social isolation and production cutbacks impede that.
Restoring Market Confidence
Instead of printing more money, he suggested that governments support existing businesses as they enforce stringent lockdown measures. This is the only way to restore market confidence.
The US According to Hao is not the main casualty of quantitative easing. Owing to its sovereignty, the USD has “intangible exploitation,” properties. Consequently, it deglobalizes movements, prompts the rise up of populist groups, and telling wealth inequalities globally.