Brian Armstrong attributes the offshore migration of crypto innovation to regulatory ambiguity and the specter of enforcement actions. The CEO of Coinbase emphasizes how American financial system innovation has historically bolstered US economic interests and upheld the dollar’s global reserve currency status. Yet, Armstrong cautions that China’s ongoing efforts are presently challenging the dominance of the dollar in the realm of finance.
China’s Strategy to Leverage Financial Technology for Its Interests
China’s two tech giants, Alipay and Tencent, have integrated payment systems that provide direct access to services. The Chinese Communist Party is promoting these platforms through its Belt and Road Initiatives, which include its social credit system.
With the launch of its digital yuan, China is challenging the US dollar’s role in global commerce. Moreover, Hong Kong positions itself as a crypto hub in response to China’s fintech-driven protection of its interests.
Brian Armstrong Warn on the Importance of Securing Crypto Technology
Coinbase CEO Brian Armstrong warns that neglecting to secure crypto technology in the US will impact future generations. He suggests that the US should learn from its mistakes in repatriating technologies like semiconductors and 5G infrastructure, and make a concerted effort to bring crypto and blockchain innovation back to the US in the next decade. He believes this will demand a sustained, albeit uncertain, effort to prevent a costly burden on future generations.
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