USA Losing Technological Cold War With China
Chris Larsen warned that the United States is losing the tech cold war with China.
The two most powerful economies, China and the United States, have been engaged in the so-called technological cold war for over two years. Chris Larsen, co-founder and former CEO of Ripple, warned the cryptocurrency community at the Blockchain Summit in Los Angeles that the United States is lagging behind China in developing the international financial system of the future.
Larson believes the regulatory chaos in the US government is keeping China behind in the race to shape legislation. Larson also noted that Chinese officials have passed clear laws and provided resources and infrastructure for the development of blockchain technologies, big data, artificial intelligence, surveillance and other innovations.
China has realized that these technological innovations are the key to who will rule the financial system in the future. For the next two decades, SWIFT and correspondent banks will no longer be the dominant systems we will use.
Larson also stressed that because China is a leader in the digital currency center — banks (CBDC) and is leading the way in the digitalization of the domestic currency of the United States. The former Ripple CEO also pointed out that digital currencies will allow China to internationalize the acquisition of the yuan and reduce the dollar’s credibility in the international market.
Larson stressed that Chinese regulators are much more flexible than the US Securities and Exchange Commission (SEC). In addition, the former Ripple CEO said that US regulators should acknowledge that blockchain technology is a key part of the technological arms race, as the SEC currently maintains an exclusive policy aimed at preventing the insane number of Initial Coin Offerings (ICOs).
Larsen also said that due to regulatory uncertainty, Ripple is currently undergoing a reorganization of internal executives and is considering a move. Potential new relocation sites include the UK and Singapore, but it has not yet been finally decided whether to relocate.
We don’t know how this will work. You know very well that countries such as Switzerland, Great Britain, Singapore and Japan are trying to become the world’s centers of financial technology: — said Larsen.
At the same time, Fan Yifei, President of the State Bank of China, announced that the value of the yuan, calculated as part of the Digital Currency Electronic Payments Pilot Program (DCEP), exceeded $ 162 million.
Fei Xiaotong noted: A total of 113,300 personal digital wallets and 8,859 corporate digital wallets were opened.