Chris Larsen, the co-founder and Chairman of Ripple, said that China’s digital currency leadership is a “once-in-a-century opportunity” to replace the US dollar with the digital yuan as the world’s reserve currency, as the United States is losing the “technological cold war” to China due to its tough regulatory approach to blockchain and cryptocurrency-related companies.
It has been reported that Larsen set out the main reasons for China winning the US in the ongoing technological struggle. China has “already achieved near-universal use of digital payments” through tech giants like Alipay and WeChat.
And while China is “on the cusp” of issuing its own central bank digital currency, the digital yuan, the US still does not have an official digital dollar initiative, Larsen noted:
“At least 65 percent of cryptocurrency mining is concentrated in China, which means the Chinese government has the majority needed to wield control over those protocols and can effectively block or reverse transactions.”
Also, he mentioned China’s security expansion to Hong Kong by claiming that China is now “the only country in the world that controls two global financial centers.”
Larsen concluded that in order to challenge China’s tech and crypto leadership, the US “must recognize that strong American financial technology companies” are in its own national security interest.
China’s crypto leadership is “once-in-a-century opportunity” to replace $USD with the digital yuan, Ripple co-founder @chrislarsensf says https://t.co/ay0fQSdTPu — Cointelegraph (@Cointelegraph) August 24, 2020
He said that the US has to start the digital dollar initiative immediately to keep up with the digital yuan, with the next step to be establishing Silicon Valley as a global financial technology powerhouse.
He said that the US has to start the digital dollar initiative immediately to keep up with the digital yuan, with the next step to be establishing Silicon Valley as a global financial technology powerhouse.
Thus, Larsen’s comments come amidst the ongoing regulatory uncertainty around XRP.
Source: Cointelegraph | Image: Bitrazzi
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