- The US is up against China’s powerful digital systems
- Hong Kong is becoming a global crypto hub
- US financial infrastructure is almost obsolete technologically
In an opinion piece for MarketWatch, Coinbase CEO Brian Armstrong writes that China will take advantage of the unintelligent regulation of cryptocurrency in the US.
The threat
Public investments in America underscored that the country driving innovation of the world’s financial system was in the best position to protect Americans’ economic interests and affirm democratic values.
Now, the US and other leading democracies are up against China’s powerful digital systems. Tencent and Alipay, two Chinese tech titans, have launched integrated payment systems, which are being promoted by the Chinese government worldwide through the latter’s Belt and Road Initiative. This successful program has integrated a social credit system.
China is challenging the US dollar
China is challenging the US dollar as the global currency with the recent launch of its digital yuan, among other moves. Hong Kong is becoming a global crypto hub and seeing competition from traditional finance centers like the UK, the UAE, Japan, Brazil, and Australia.
80% of Americans feel the financial system has failed
Armstrong writes that his decision to found Coinbase in the US was motivated by the fact that the link between fintech and democratic values was integral to US identity. However, he adds that 80% of Americans feel the financial system fails to serve their interests at the moment. Slightly fewer believe things will be even worse for the next generation.
According to Armstrong, the US is losing influence because its financial infrastructure is about to become technologically obsolete.
Smart regulation is needed
Armstrong finds that the US came to define the Internet Age in the 1990s and early 2000s thanks to smart and “customized” regulation. He calls on Congress to seize the historic opportunity crypto offers and adopt full-scale legislation that protects consumers and promotes innovation.
He writes that crypto can play a critical role in stimulating the US economy and even promote democratic values globally.
A high price to bring crypto back
The CEO of Coinbase concludes:
If we fall short today, the next generation of Americans will pay the price. Bringing crypto and blockchain innovation back to the US a decade from now will require a colossal and sustained effort that may not succeed.
