PayPal co-founder and venture capitalist Peter Thiel believes Bitcoin could be China’s weapon in a financial war with the United States. Thiel voiced his point during a talk at the Nixon Seminar this week.

According to him, Bitcoin can serve as a very strong reserve currency for the PRC government, and even the imminent launch of the digital yuan does not play such a big role in the context of China’s rivalry with the United States.

Bitcoin may well become a threat to the turnover of the US dollar, Thiel is sure. Here is his remark, in which he shares his thoughts on this matter. The quote is from Decrypt.

While I am somewhat of a cryptocurrency advocate and Bitcoin maximalist, I am really wondering if Bitcoin should be viewed as part of a Chinese financial weapon against the US at this stage. In particular, does the main cryptocurrency threaten the dollar.

Recall that Bitcoin maximalists are people who support only BTC in the cryptocurrency niche. They predominantly oppose the popularization of other coins and question their potential. This is mainly due to the fact that they use blockchain assets exclusively for storing and transferring value. Naturally, the same niche of decentralized finance based on Ethereum offers much more exciting opportunities – however, for some reason, BTC-maxi is not of interest.

Here is a transcript of a conversation with Thiel. We recommend that you watch if you understand English by ear.

The question Thiel answered was not about Bitcoin per se, but about China’s plan to create a digital yuan. Seminar moderator Hugh Hewitt wanted to know if the digital yuan was “a threat to the dollar and its dominance in world markets. Thiel noted that this is not the case. According to him, CBDC in China will only become an “instrument of totalitarian control” over the financial flows of the population, that is, the digital yuan project is allegedly not aimed at international politics.

Recall that the digital yuan is actively used in test mode within the country. Moreover, representatives of the country’s main bank believe that the rise in the Bitcoin exchange rate over the past year has seriously helped popularize the new form of money.

Bitcoin is the real problem, because it is more likely to serve as a functional reserve currency. And this makes sense: the less the dollar dominates, the less influence American monetary and foreign policy has. Peter continues.

If China is buying up Bitcoin, then perhaps from a geopolitical point of view, the United States should ask somewhat tougher questions about the current situation.

Note that American companies are actively buying the first cryptocurrency and are clearly not worried about the possible role of China in its creation. Still, BTC is a decentralized project that exists thanks to all participants in its network. Therefore, such remarks seem exclusively political, in addition, the creator of PayPal has reason to worry about the popularity of his platform in the future, where people will switch to active use of cryptocurrencies.

Bitcoin cryptocurrency blockchain

Bitcoin price change in the last 90 days

Does this mean BTC will soon be heavily regulated within the US? According to JPMorgan CEO Jamie Dimon, the infrastructure for regulating Bitcoin could be a problem. He expressed his concerns in an open letter to shareholders.

Возникают серьёзные проблемы, которые необходимо решать, причём довольно быстро: рост теневого банкинга, правовой и нормативный статус криптовалют, правильное и ненадлежащее использование финансовых данных, огромный риск проблем с кибербезопасностью, правильное и этичное использование искусственного интеллекта, а также эффективное регулирование платежных систем.

Позицию Даймона можно понять, особенно когда речь идет о криптовалюте: у разных правительственных агентств разные планы, и иногда с противоположными позициями. Примером может служить Комиссия по ценным бумагам и биржам (SEC), которая претендует на регулирование оборота токенов на основе Ethereum, ранее проданных в США. При этом Комиссия по торговле товарными фьючерсами (CFTC) контролирует всё, что связано с BTC: например, фьючерсные и опционные контракты. Кроме того, есть IRS, FinCEN и различные государственные и местные регулирующие органы, у которых есть собственное мнение по этому поводу.

Вернемся к главному вопросу — что будет делать США с Биткоином? Пожалуй, единственным выходом для Америки в данном случае является децентрализация майнинга BTC, то есть размещение большего количества крупных криптоферм на своей территории.

This can be done due to preferential conditions for miners, which will even allow many to lure away from China, where most of the devices for BTC mining are concentrated due to cheap electricity. However, this does not make much sense, since in the overall picture it is unlikely to affect anything.

We believe that such experts should better study the topic of decentralization and its features, and at the same time stop treating cryptocurrencies as something hostile. By the way, such changes are already noticeable. On the eve of the Minister of Economy of the United Arab Emirates said that “cryptocurrencies and tokenization will be the key to doubling the country’s economy.”

Leave a Reply

Your email address will not be published.