Ripple co-founder and executive Chris Larsen, who argued that the US lost the blockchain war with China, criticized US officials for lagging behind China in blockchain technology. Speaking at the LA Blockchain Summit on October 6, 2020, Larsen said the US is very weak in creating the future global financial system.
Chris Larsen said the Chinese government is far ahead of the US in blockchain and technological innovations. Before these statements, Larsen had criticized the US not taking a positive regulation decision for Ripple. Stating that they are considering moving the center of Ripple due to this attitude, Larsen said that this decision taken by the USA was disappointing and made some comments on the US-China technology war.
Chinese Government Ahead of the USA in Financial Technologies
The Chinese government, according to Larsen; It is far ahead of the US government in promoting innovation in resource allocation, infrastructure, blockchain, artificial intelligence, and other technologies. In the ongoing technology war between the two countries, the US was the loser, according to the Ripple manager. Anticipating the transition to a new financial system in the future, Larsen said:
“China knows that these technologies are the only key to determining who will control the global financial system of the future. We will not use systems such as SWIFT and correspondent banking in the next 20 years. ”
Adding that the US Securities and Exchange Commission (SEC) should use blockchain technology as a critical weapon in the technology war with China, instead of discriminatory policies, Larsen also criticized the US for digital central bank money (CBDC). Emphasizing that the US lags behind in the digital dollar issue, he stated that China’s CBDC is much more ahead. It is thought that if China’s digital yuan is used globally, the throne of the US dollar could swing.
Larsen Warns the US About PoW
Some warnings came from Larsen to the US about China’s dominance of the market in cryptocurrency mining. Stating that China is at the top of proof-of-work (PoW) and mining, cryptocurrency miners can rewrite history and stop money transfers at any time. In this case, he warned the SEC, stating that the SEC’s adoption of PoW protocols reinforces China’s dominance over the cryptocurrency market.