PayPal Boss Charges US Over Bitcoin Being Chinese Financial Weapon
PayPal co-founder, Peter Thiel, has called for more control and action on Bitcoin especially with regards to China during a virtual event on ‘Big Tech and China’ saying the top cryptocurrency could be a Chinese financial weapon that should concern the US.
“From China’s point of view, they don’t like the US having this reserve currency because it gives us lots of leverage over Iranian oil supply chain and all sorts of things like that,” he said at a Nixon Foundation seminar. “They don’t want the renminbi to become the reserve currency because then you’ll have to open your capital account and you’ll have to do all sorts of things that they really don’t want to do. I think the euro, you can think of it as, in part, a Chinese weapon against the dollar. The last decade hasn’t quite worked out that way but China would like to see two reserve currencies like the euro.”
Thiel’s view may not directly represent Paypal’s which recently started opening up its embrace to cryptocurrencies to allow their use on its global payment platform, his line of thought touches on the topic of how the US dollar dominance may be about to be undermined.
“Even though I am sort of pro crypto, pro Bitcoin maximalist person,” he said, “I do wonder whether at this point Bitcoin should also be thought, in part, as a Chinese financial weapon against the US where it threatens fiat money but especially it threatens the US dollar and China wants two things to weaken it. So it’s sort of China’s long Bitcoin and perhaps, from a geo-political perspective, the US should be asking some tougher questions about exactly how that works.”
While a coordinated form of control or regulation of Bitcoin use, as well as the entire crypto space, has been a topical global issue, the focus has always been on where the US stands as a major economy with regards to the emerging asset class.
A favourable decision by the US Securities and Exchange Commission (SEC) for a Bitcoin ETF from the various applications filed in should indicate the US has softened a bit on its stance. However, that has not happened hence attempts by major players like Fidelity and VanEck to enter the digital market using ETFs continue to be blocked. Instead, it sparked debates among insiders about what an ETF approval would mean for the crypto and blockchain sphere.
“The approval of a bitcoin exchange-traded fund would be a huge step in the right direction for the mainstream adoption of cryptocurrency trading. Bitcoin’s growing acceptance as an alternative to traditional finance is happening quickly and regulators need to catch up. Without approval from the SEC, crypto-hungry investors enter the market at their own risk,” says Li Jun, founder of Ontology, the public blockchain specializing in decentralized identity and data. “A SEC endorsement of a Bitcoin ETF would see the doors of digital finance open for millions of new users, as well as the freeing up of access to millions of dollars. The United States need only look to the successful launch of the world’s first bitcoin ETF in Canada to see the massive economic benefits that can be gained from embracing this asset class.”
A US-approved ETF would allow US regulators to catch up with other regulators and ensure to attract local and global capital seeking exposure to Bitcoin but in a compliant and institutional grade way, says Sheffield Clark, the co-founder of Coinsource, the world’s leading provider of Bitcoin ATMs.