US Crypto Regulation Could Weaken National Security: Coinbase CEO2. June 2023
• Coinbase CEO Brian Armstrong warns that US regulatory approach to crypto will weaken the country’s “national security posture.”
• Armstrong argues that crypto innovation is moving offshore due to lack of clarity and threats of enforcement action from regulators.
• Chinese tech behemoths Alipay and Tencent are challenging the US dollar’s global reserve currency status with their digital yuan.
US Regulatory Climate Puts National Security at Risk
Coinbase chief executive Brian Armstrong has warned that the US’s current regulatory climate surrounding cryptocurrencies could put national security at risk. In a new opinion piece published in MarketWatch, Armstrong argued that the lack of clarity and threats of enforcement action from regulators is driving crypto innovation offshore, weakening the US’s standing in financial matters.
Chinese Tech Behemoths Challenging US Dollar
Armstrong highlighted China’s recent moves to challenge the US dollar’s status as a global reserve currency by promoting powerful payment systems such as Alipay and Tencent, which come with integrated services and direct access. The Chinese Communist Party has further bolstered their efforts by launching their own digital yuan, aiming to directly compete with America’s currency. Hong Kong is also positioning itself as a global hub for crypto development.
America Must Act Now or Face Financial Burden
Armstrong believes that if America fails to secure its place in crypto technology now, it will face an enormous financial burden later on when trying to repatriate these developments back home. He drew comparisons between this situation and similar circumstances regarding semiconductors and 5G infrastructure, where billions were spent on bringing those technologies back into the country today.
China Advancing Rapidly With Crypto Innovations
The Coinbase CEO concluded his piece by emphasizing how quickly China is advancing with its cryptocurrency innovations, stressing that America must act quickly if it wishes to remain competitive in this space in years to come. Otherwise, it may miss out on countless opportunities afforded by blockchain technology for economic growth and development worldwide.
Overall, Brian Armstrong believes there is still time for America to make strides towards becoming a leader in cryptocurrency innovation before other countries leave us behind – but we must act fast if we wish to avoid being left behind financially in the coming years.