Ripple founder Chris Larsen, who has always been the center of attention with his ambitious statements, said that China and the US are in a technological cold war. Larsen also talked about the digital yuan developments in China and the possibility of China outpacing the US with its activities in the cryptocurrency world.
China and the US have already taken the first steps of a technological cold war, according to Chris Larsen, founder of the blockchain-based money transfer network Ripple. Larsen suggests that China’s dominance in the cryptocurrency and finance world gives the country a huge advantage over the US.
Ripple’s founder thinks that dollar dominance in the financial world could be weakened in light of the widespread use of digital money, the advantages of the blockchain system, and technological advances. Larsen argues that by taking advantage of the power of such an environment, China can get ahead in dollar-efficient areas with the digital yuan project and government-controlled digital money transfer systems.
China: has near ubiquitous use of digital payments ✔; piloting state-controlled digital Yuan ✔; has the largest concentration of crypto miners ✔. The U.S. can’t afford to lose this tech Cold War if we want to maintain economic leadership globally. More thoughts below @TheHill https://t.co/FOpS3ceXUC
— Chris Larsen (@chrislarsensf) August 21, 2020
With the Digital Yuan, the dollar could be out of order
Ripple’s founder argues that with the technological advances in the cryptocurrency industry and the advantages of blockchain, dollar domination in the financial world may end. Larsen says that China can be a pioneer in the global finance world with digital yuan efforts and online payment systems by taking advantage of such an environment. It is possible to see examples of this in increasingly widespread payment applications originating from China. China-based companies such as Alibaba and Tencent, technology giants in mobile payments, have gained an indispensable place in most people’s lives. According to the information published by Forkast.News, mobile payment transactions have multiplied over the years and become more widespread. The volume of these transactions increased 28 times between 2014 and 2018, and a total of 277.4 trillion yuan (about 40 trillion dollars) was processed in 2018.
Digital Currency Moves from Two Fronts
While China is taking actual steps to implement the national digital currency project, it seems that America is just trying to grasp the situation. China announced that it will begin piloting in 4 regions, including some cities that will host the 2022 Winter Olympics, last week. Fed also stated in a statement it made in mid-August that they were preparing for digital currency trials. However, according to the statements of Board Member Lael Brainard, although the Fed’s digital currency trials are not yet ready to digitize the dollar, these studies are currently being carried out to weigh the significant effects of digital currencies.