Dollar will ‘not lose reserve currency status in my lifetime’ but Bitcoin, cryptos, are a ‘real threat’ - Steve Moore
Mounting national debt and continuous quantitative easing from the U.S. Federal Reserve are fueling concerns that the government is devaluing and debasing the U.S. dollar. Many investors, including billionaire Stanley Druckenmiller, have recently expressed fears that the dollar may lose its de facto global reserve currency status.
Steve Moore, senior economist at FreedomWorks, dismissed this concern.
Speaking to Michelle Makori, editor-in-chief of Kitco News, on the sidelines of the Freedom Fest 2021 conference, Moore said “I don’t see that happening in my lifetime,” in reference to the dollar getting dethroned.
Moore is the chairman of the Task Force on Economic Revival of the FreedomWorks Board, and a member of the Wall Street Journal editorial board. He has previously served as president of the Club for Growth, chief economist at The Heritage Foundation, and one of the top economic advisors to former President Donald Trump.
Moore said that the dollar is the “least rotten apple in the cart” and won’t be challenged any time soon by a conventional foreign currency.
“Now, I think a much bigger threat to the supremacy of the dollar…is these cryptocurrencies, like Bitcoin and so many others. I think this is here to stay, I think this is an incredibly positive thing because it’ll have a disciplining effect on these central bankers that feel like they run the world economy,” he said.
On government regulation and oversight of Bitcoin, Moore expects a tougher stance going forward.
“They’re terrified. What do government officials want? Control. They can’t control these things like Bitcoin,” he said. “They don’t want the competition and that’s exactly why if you love freedom and liberty you should be in favor these kinds of alternative currencies.”
Moore said that the government’s likely response will be the rollout of a central bank digital currency, or Fedcoin.
“I don’t know if it’s coming five years from now or ten years from now, but the whole world is going digital,” he said. “There is a risk that governments are going to track every transaction you make, where you go, what you spend your money on. That, I think as a libertarian, I find that somewhat troubling.”
For more information on the debt ceiling and the debt crisis the country is facing, watch the video above. Follow Michelle Makori on Twitter: @MichelleMakori (https://twitter.com/MichelleMakori).