Brian Armstrong warns of Chinese hegemony

According to Brian Armstrong, CEO of Coinbase, China could benefit from the restrictive laws imposed by the United States on the cryptocurrency industry. “The United States and other democratic nations are facing digital systems promoted by an ambitious adversary, China,” he said.

For Brian Armstrong, China could become a future hub of crypto innovation

The CEO of Coinbase seems to believe that the Middle Kingdom intends to become a center of attraction for blockchain innovation. In an editorial published by MarketWatch, he states that China should benefit from “restrictive” crypto rules imposed in the United States. 

He adds that these rules inadvertently stimulate innovation abroad. Brian Armstrong continues by stating, “The United States and other democratic nations are facing digital systems promoted by an ambitious adversary, China.” He specifically mentioned the payment systems Alipay and Tencent.

“With the recent launch of its digital yuan, China aims to directly challenge the US dollar and its role in global commerce,” Brian Armstrong added.

He does not find it “surprising” that Hong Kong is positioning itself as a new cryptocurrency hub. TheBlock notes that Brian Armstrong’s remarks come at a time when there is increasing speculation about China’s return to the blockchain industry. In fact, China Central Television, the public television channel, aired a program on cryptocurrencies.

Is China ahead of the United States in crypto?

The United States seems hesitant about how to approach cryptocurrencies. In 2021, China made a clear decision by outright banning their use. However, in early May, the country published a Web3 white paper that encourages industry development. Meanwhile, the Hong Kong Securities and Futures Commission has released its findings Which propose regulatory requirements for the trading of virtual assets. These are expected to come into effect on June 1. China seems to have understood the importance of crypto assets.

“It’s not just China that can see the possibilities,” wrote Brian Armstrong. “Crypto, like the Internet before it, has the potential to modernize finance.”

Coinbase is at odds with the US securities regulator regarding the need for clear crypto regulation. Brian Armstrong believes that the United States could even face security threats if China makes a breakthrough in blockchain. But is he just trying to scare the government to obtain the desired regulation?