Paypal Cofounder Peter Thiel Thinks China Is Using Bitcoin as Financial Weapon Against the US

According to PayPal co-founder Peter Thiel, the Chinese government, which hates the reserve currency status of the US dollar, could use bitcoin as a financial weapon against the United States. While he admits that China has no intention of making the yuan its reserve currency, Thiel remains convinced that the Asian country craves Bitcoin because it weakens the dollar’s influence.

Reserve currencies

At a recent Richard Nixon Foundation seminar, Thiel also suggested that China would prefer to have two reserve currencies to counterbalance the dollar. According to him, the Asian country is already using the euro as a weapon against the dollar, whereas this was not the case in the past decade.

According to Thiel, a self-proclaimed maximizer of the bitcoin industry, bitcoin has become the second reserve currency used by China to counter the influence of the dollar. Thiel therefore thinks that the US government should start asking hard questions about how this works.

Leadership in digital currency in China

Meanwhile, the co-founder of Paypal also shared his thoughts on China’s seemingly dominant role in the race for digital currencies issued by central banks, and whether the US should be worried. Thiel says he is against the Chinese digital RMB project:

Some internal stability in China… it’s not a real crypto-currency, it’s just a kind of totalitarian scale.

Meanwhile, another speaker at the same Richard Nixon Foundation seminar, former US Secretary of State Mike Pompeo, agreed with Thiel’s assessment of the digital yuan. In his speech, the former minister also questioned why the United States is lagging behind China. He said:

I don’t think we will take the lead on this front, where an authoritarian regime like China sees almost nothing but advantages in having the ability to spend or withdraw money.

Meanwhile, Pompeo predicts that many other countries will similarly create their own digital currencies to avoid or circumvent US sanctions or fines.

While Pompeo confirmed that the US is working on its own digital currency project, he acknowledged that his country will be slower in doing so.

Do you agree with Thiel’s comments that BTC could be used as a financial weapon against the US? Tell us what you think in the comments below.

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