Novogratz Calls for ‘Privacy Protected’ Government-Linked Crypto Wallets

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In Brief
  • Mike Novogratz believes every citizen should have a "privacy protected" digital currency wallet linked to different tiers of government.

  • The wallet would work one way, allowing the government to send money.

  • Crypto Twitter was not keen on the Galaxy Digital chief's idea.

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Mike Novogratz believes times of great crisis, like those we’re currently living through, illustrate why every individual should have a government-linked cryptocurrency wallet. However, few seemed to agree with his line of thinking, at least at first.

Given the opposition to centralized authorities generally running through the cryptocurrency industry, not many of Novogratz’s followers seemed to be on board with the idea initially. When BeInCrypto reached out to the Galaxy Digital CEO, however, he offered further details, explaining:

“I would advocate a privacy protected wallet/identity that’s not govt controlled but where governments could send money.”

Novogratz Gold Rally

Government-Linked Cryptocurrency Wallet Could Help in Times of Crisis

We’re currently living through what may turn out to be the greatest crisis of our lifetimes. Social distancing measures have become the norm around the world, the death toll of the coronavirus continues to rise, and central banks are getting increasingly creative with their efforts to keep economies afloat amidst the chaos.

Mike Novogratz believes that a government-linked cryptocurrency wallet would be useful at such a time of crisis. The technology could indeed streamline financial aid distribution to citizens. BeInCrypto reported on the potential advantages of digital currency payments over traditional methods for such ends recently.

Industry Says, “No Way!”

Before the Galaxy Digital chief clarified his statement, his followers made it clear they were far from keen on the idea of having a digital wallet linked to multiple tiers of government. Industry observers chimed in on his tweet to express their disdain at the suggestion.

Many simply questioned what benefit a government-linked wallet would serve. Meanwhile, those more questioning of the powers that be scoffed at the notion. Other respondents argued the importance of having a digital wallet not linked to what they described as a “shadow banking cartel system.”

https://twitter.com/paddystash/status/1248266609820602375

There is indeed a strong case to be made for such digital currency payments in times of crisis. The technology would certainly speed up the distribution of welfare payments to the millions now out of work and claiming benefits. Those living paycheck to paycheck would surely benefit from more immediate access to the money they receive from stimulus packages like that of the US.

Fortunately for now, individuals are not limited to just one currency. Provided that this remains the case, a digital currency for government use could well help those most in need during times of crisis.

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A former professional gambler, Rick first found Bitcoin in 2013 whilst researching alternative payment methods to use at online casinos. After transitioning to writing full-time in 2016, he put a growing passion for Bitcoin to work for him. He has since written for a number of digital asset publications.

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