Coinbase CEO Brian Armstrong thinks the US regulatory approach to crypto will weaken the country’s “national security situation”.
In a new op-ed published in MarketWatch, Armstrong argues that crypto innovation is moving overseas due to a lack of clarity and threats from regulatory enforcement action.
Coinbase’s CEO says US innovation in the financial system throughout the 20th century benefited US economic interests and maintained the dollar’s status as the global reserve currency.
However, Armstrong warns that China is currently testing the dollar’s financial supremacy.
“Two Chinese tech giants, Alipay and Tencent, offer integrated payment systems with direct, instant access to a range of services. The Chinese Communist Party promotes these powerful, fast-growing platforms globally through its Belt and Road Initiatives, with its ingrained social credit system.
And with the recent launch of its digital yuan, China is looking to directly challenge the US dollar and its role in global trade. Given these steps and China’s strategy of using 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 be a financial burden for the country’s next generation, according to Coinbase’s CEO.
“We are spending billions today to repatriate technologies such as semiconductors and 5G infrastructure. We should learn from that mistake. Bringing crypto and blockchain innovation back to the US ten years from now will require a massive and sustained effort that may fail.
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