According to the businessman, China will use cryptocurrency to undermine the stability of America’s financial system.
One of the co-founders of the electronic payment system PayPal, Peter Thiel, believes that China views the most capitalized cryptocurrency – bitcoin – as a “financial weapon” against the United States. The businessman shared this point of view during a speech at the Richard Nixon Foundation event.
A fragment of his speech:
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What’s wrong with bitcoin
According to Peter Thiel, bitcoin can be seen as a tool to undermine the stability of the US financial system. The co-founder of PayPal noted that earlier the PRC, as he believes, used the euro for these purposes. At the moment, against the background of a low level of efficiency in the use of the official currency of the eurozone, in order to undermine the stability of the American financial system, according to Peter Thiel, China needed an additional instrument in the form of a cryptocurrency.
“It is not beneficial for the Chinese government that America has such a reserve currency because the financial instrument opens up the opportunity to influence the oil supply chains and other areas,” – this is how Peter Thiel commented on his point of view, adding that bitcoin threatens all fiat money, but especially – the US dollar.
Recall that it is in China that over 70% of the bitcoin hash rate is concentrated. It is noteworthy that news regularly appears on the network about the pressure of the PRC authorities on miners. For example, at the end of 2020, many members of the Chinese crypto community lost access to electricity and were forced to stop mining bitcoin. Despite this, China remains the main mining center for cryptocurrency.
Bitcoin may be more dangerous for the US than the digital yuan
The PayPal co-founder shared his views on the bitcoin threat to America in response to a question about the possible impact of China’s central bank digital currency (CBDC) issuance on the stability of the US dollar. Peter Thiel, unlike a number of experts, believes that the PRC authorities are not faced with the task of imposing the digital yuan on the world.
He is also confident that the Chinese CBDC does not claim to be the world’s main reserve currency. The businessman believes that China has enough bitcoin to weaken the dollar.
“The Chinese government intends to weaken the US dollar. China is targeting long positions in bitcoin. From the point of view of geopolitical perspectives, the American authorities should raise questions about how such a strategy can work more rigidly, ”said Peter Thiel.
Earlier, Forbes analysts came to the conclusion that the digital yuan, if the Chinese authorities set such a task for themselves, will be able to displace the American national currency from the position of the leader. You will find more information on how the PRC’s CBDC can affect the dollar in our material.
It is not known when the digital yuan will be released. At the same time, information has recently appeared on the network that large banks in China have launched a collection of applications for activating wallets for CBDC.