China Will Dominate Global Digital Finance Warns Coinbase CEO

In an opinion piece on May 30, Coinbase’s CEO wrote that the recent crypto industry turbulence “may make it tempting for policymakers to write it off as a volatile asset class.”

This is effectively what US regulators are doing, missing the forest for the trees in treating crypto as a speculative or gambling tool rather than a financial technology foundation.

“Failing to see that crypto is much more than individual transactions puts at risk America’s time-honored role as a global financial leader and an innovation hub.”

in today’s time @market Watch I’m sharing an op-ed encouraging policymakers to look at the big picture with crypto. It is vital to US technology leadership and national security that this industry be (at least partially) made in the US.

– Brian Armstrong 🛡️ (@brian_armstrong) May 30, 2023

Coinbase Boss on China

The message has been reiterated by several industry executives and even several high-ranking senators. However, this has so far fallen on deaf ears, with the Securities and Exchange Commission (SEC) refusing to acknowledge that this new asset class needs its own legislation.

“By implementing restrictive policies, the US is inadvertently driving crypto-innovation offshore,” Said Armstrong.

He further said that the US and other democratic nations are up against the digital system “promoted by an ambitious adversary, China”.

He cautioned that China is promoting its digital platforms Alipay and Tencent globally through its Belt and Road Initiative. The digital yuan is also the central bank digital currency (CBDC) being pushed hard by Beijing. In addition, China aims to directly challenge the US dollar and its role in global commerce, Armstrong warned.

“Given these moves and China’s strategy of leveraging fintech to protect its own national interests, it should come as no surprise that Hong Kong is positioning itself as a global crypto hub.”

China poses the biggest threat, but other countries are moving forward with the rollout of crypto regulations. These include the UK, the United Arab Emirates, Brazil, Japan, the European Union, Australia and Singapore, all vying to become crypto hubs.

The US financial system is falling behind

The Coinbase CEO revealed that a majority of Americans feel that the current financial system does not serve their interests. Surveys show that 70% believe their children’s situation will get worse if nothing changes. The galloping national debt (which now has no limits) and rampant inflation are affecting everyone except the wealthiest Americans.

He warned, “If we lapse today, the next generation of Americans will pay the price.”

Coinbase was threatened with legal action by the SEC in March. The firm has requested clarity on the rules and talks with the regulator, which continues to put up walls and reject its appeals.