As regulatory uncertainty circles XRP, the third-largest cryptocurrency, Ripple senior executive said, the United States regulators need to look into blockchain technology to maintain the dominance of the US dollar and stop losing the “technological cold war” from China.
On August 21, Ripple co-founder Chris Larsen passed a statement that China is pushing up the development of digital currencies to a great extent; its digital currency leadership is a “once-in-a-century opportunity” to overtake the dollar as an international currency.
China Leads in the Development of Digital Currency
Analysts believe that China’s active involvement in blockchain technology and the crypto sector could be a threat to the US financial system, as the United States financial infrastructure is fully dependent on the dollar’s status.
Market reports indicate that China is “on the cusp” of launching digital yuan. China’s commerce ministry has extended the testing program of the digital yuan in large cities, including the capital Beijing. Whereas the United States has not commenced a digital dollar project, Larsen adding:
“At least 65 percent of cryptocurrency mining is concentrated in China, which means the Chinese government has the majority needed to wield control over those protocols and can effectively block or reverse transactions.”
Earlier in May 2020, Garlinghouse, CEO of Ripple, also emphasized that the US is already standing behind in the progress of cryptos compared to China. Brad further revealed that financial investors are looking to join the crypto community if the US regulatory creates a welcoming framework.