Research and educational institution Heritage Foundation senior economist Steve Moore has predicted a supremacy battle for the currency of choice between Bitcoin and the U.S. dollar.
Speaking to Kitco News, Moore noted that he does not envision Bitcoin replacing the dollar as the currency of choice anytime soon. However, according to Moore, since cryptocurrencies are here to stay, they will have a disciplining effect on the dollar.
His comments come following concerns that the dollar is under devaluation in the wake of mounting national debt and continuous quantitative easing from the Federal Reserve.
“I don’t see that happening in my lifetime…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,” Moore said.
Government to increase regulations on Bitcoin
With Bitcoin’s recent growth, Moore says the government is terrified, and therefore he expects a tougher oversight on the sector.
He notes that the government cannot control Bitcoin, and to alleviate the expected competition, regulations will come into play. If the path is explored, the U.S. will follow China in cracking down on Bitcoin.
According to Chinese authorities, Bitcoin has the potential of destabilizing the financial system. Consequently, the move resulted in a significant price correction. However, Bitcoin has since made key gains, trading at $37,566 by press time.
However, Moore said the government’s likely response would be a central bank digital currency rollout.
The economist further expressed concerns with the digital dollar, stating that it might give the government more powers to track how people spend money. According to Moore, the notion that people who don’t share how they spend money are criminals is wrong.
Notably, since the inception of cryptocurrencies, one major concern has been the role of digital currencies in aiding crime. Consequently, several jurisdictions globally are reacting by limiting asset utilization.
Related video: Dollar will ‘not lose reserve currency status in my lifetime’ but Bitcoin is a threat – Steve Moore
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