China Poised to Relegate the US Dollar, Says Ripple CEO

| Updated
by Adedamola Bada · 3 min read

China has increased speed on its CBDC project, which is now a source of worry to critics who wonder what the project will mean for the U.S. Dollar. Ripple CEO is sure: the US is falling behind China on crypto innovation.

Ripple CEO, Garlinghouse, has sounded an alarm geared at calling the United States government to action, reiterating that China’s goal with the CBDC is to destabilize the US dollar. The CEO urged the government of the United States during an interview with Fox Business to be at the forefront of the crypto revolution, instead of China.

Garlinghouse talked about the tech boom back in the early 2000s and how the US took control of the industry and benefited immensely from that single action. He opined that the same could be done for cryptocurrency so that the US will not be left behind. In his words:

“We do have some of the leading companies here based in the United States doing things around crypto. Ripple has been a leader in this space, I think there’s an opportunity to get behind some of these efforts.”

Crypto: More of a Friend than an Enemy

Garlinghouse said that the US government only saw cryptocurrency on one front, hence its behavior towards the industry. He urged the government to consider other benefits of digital assets and not only pay attention to the adverse reports made about it. This, he said, is what China is currently doing and if nothing is done fast by the US, it will make China spearhead the crypto era.

The CEO also mentioned that privacy issues would halt the progress of Facebook’s stablecoin, Libra, even before it moves past the whitepaper phase. He also blamed XRP‘s lagging condition on the US government, saying that the American government caused the unfortunate outcome suffered by the XRP. However, he said that he is ever optimistic about the future of XRP because his sights are fixed on a bigger picture.

The US-China Trade War Rages On

President Donald Trump has pulled out yet another rabbit from his ‘war hat’ and this time around he plans to delist Chinese owned companies from US stock exchanges. The plan is said to improve the security of American citizens and also to curb their investments in Chinese companies.

The US-China trade war did not start in recent times, actually, it began in the 80’s, just that the current US president is dragging it out and taking it to higher levels. At the moment, Chinese goods worth over $360 billion now have tariffs imposed on them, and of course, the Chinese refused to take it lying down and have slammed tariffs of their own on US products of over $110 billion.

Now, the new play from the presidency is to get rid of all Chinese companies from US stock exchanges. Not long after the announcement, stocks belonging to Chinese companies began to tumble. Alibaba‘s (BABA) stock fell by 5 percent, and Baidu (BIDU) lost close to 4 percent of its share.

The EU Is Home to Crypto Assets

The European Commission’s vice president, Valdis Dombrovskis, has stated that there is a place for cryptocurrency in the EU, but there is a need to regulate and classify them.

The negative news about cryptocurrency has not deterred the European Commission in any way from favoring the industry; rather, it has pushed the commission to find ways to classify crypto assets as well as regulate them.

The European Commission did not arrive at this resolution without reason; instead, a thorough analysis of the crypto market was carried out and based on the results obtained, came to the conclusion that virtual currencies have potentials. According to Dombrovskis, a lot of the commission members are in support of cryptocurrency and are ready to work towards its development for a complete adoption in the EU.

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Adedamola Bada

Damola is a crypto enthusiast, marketer, and writer who is seeking to achieve career excellence through positive contribution to the organization that aspires for excellence.