Circle Consortium’s CEO Warns About China’s Digital Currency Bypassing The Western Banking System
When we think of China’s progress in adopting cryptocurrencies, we think of a country implementing a blanket ban. We might be forced to think that they haven’t made much progress in the ecosystem, but Jeremy Allaire from Circle begs to differ. As a matter of fact, he goes on to warn that the US is lagging behind in implementing national crypto, which might give an opportunity to China to change the way Western companies transfer payments.
Jeremy is the co-founder, Chairman, and CEO of Circle, a global crypto financial services company that provides individuals, institutions and entrepreneurs with a platform to invest in, store, trade and use digital assets, and raise capital through online securities offerings.
One of the leading reasons for China to develop its own national cryptocurrency is the US tariff war. The media also associates China’s decision to create its state digital money to the active promotion of Facebook’s Libra cryptocurrency.
In July, Wang Xin, head of the PBoC Research Bureau, said that Libra threatens the international monetary system and countries should develop their digital currency to prevent the negative economic consequences. Other authorities expressed the need to strengthen the national currency through the issuance of digital money.
“[Circle] also believes that the major reserve currencies of the world, the major trade currencies of the world, would become digital currencies. A digital currency version of renminbi that runs on software platforms that can be run over the internet, it really creates an opportunity for China and Chinese companies . . . and bypass the western banking system.”
With this digital asset, the government could have more control over its financial system. China is a centralized country that controls its citizens and is at all-times trying not to lose the power it has over its nationals.