Coinbase chief executive Brian Armstrong thinks the US regulatory approach to crypto will weaken the country’s “national security posture.”
In a new opinion piece published in MarketWatch, Armstrong argues that crypto innovation is moving offshore due to lack a of clarity and threats of enforcement action from regulators.
The Coinbase CEO says American innovation in the financial system throughout the 20th century benefited US economic interests and maintained the dollar’s status as the global reserve currency.
Armstrong warns, however, that China is currently testing the dollar’s financial supremacy.
“Two Chinese tech behemoths, Alipay and Tencent, offer integrated payment systems with direct, instant access to an array of services. The Chinese Communist Party is promoting these powerful, rapidly scaling platforms worldwide through its Belt and Road Initiatives, with its social credit system baked in.
And with the recent launch of its digital yuan, China aims to directly challenge the US dollar and its role in global commerce. Given these moves and China’s strategy to leverage financial technology to protect its own national interests, it should come as no surprise that Hong Kong is positioning itself as a global crypto hub.”
Failing to secure crypto technology in the US today will push a financial burden onto the country’s next generation, according to the Coinbase CEO.
“We’re spending billions today to repatriate technologies like semiconductors and 5G infrastructure. We should learn from that mistake. Bringing crypto and blockchain innovation back to the U.S. in a decade from now will require a colossal and sustained effort that may not succeed.”
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