Billionaire Michael Novogratz weighs in on Facebook's Libra and Bitcoin

In a recent interview with CNBC's "Squawk Box," CEO at Galaxy Digital Michael Novogratz stated that Facebook could have taken a different approach when it announced the creation of Libra.

"If Facebook would have come out originally saying 'we are building a global payment system,' I think there would have been a lot less angst. But, they came out and said 'we are going to build this new currency' and everyone turned their heads on fire."

His remarks come a day after Mark Zuckerberg, the founder and CEO of Facebook, testified before the U.S. House Financial Services Committee about his plans to launch Libra, a global currency and financial infrastructure that aims to bank the unbanked.

He urged the committee members not to embrace "Reactionary laws" that could stifle "Innovation" and would give a hedge to China.

Michael Novogratz believes that Zuckerberg made "Some really good points" about what China is doing.

He added that the Chinese government has decided to welcome blockchain technology instead of opposing it.

By creating a digital renminbi, China is at the forefront of financial innovation, said the former Goldman Sachs partner.

The ex-hedge fund manager concluded that investors should not worry about the impact that a digital renminbi or Libra could have on the pioneer cryptocurrency.

He said that they are more like "Additives to Bitcoin" than a real threat.

"What China is working on, a digital renminbi, and what Libra is, which is going to be either a digital dollar or a digital basket of currencies or some version of that, are payment systems. They are currencies. Where Bitcoin is gold. Gold is not a threat to the U.S. dollar nor would Bitcoin be a threat to these currencies."