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Is the US on the Brink of Losing the Crypto Arms Race?

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There has been much talk of the upcoming 4th industrial revolution, which will be built upon new and emerging technologies. From AI to IoT and Blockchain, there is a feeling that the globe is at a tipping point with regards to advancing with technology. 

With this emergence of new technologies, countries are trying to position themselves as leaders in the space before the space is well established. These emerging technologies give opportunities for smaller nations to throw their hat in the ring, and for the bigger nations, it is a race to stay on top.

Already, there is a race going on when it comes to AI – for example – and the latest race appears to be Bitcoin with China recently stating its intention and grabbing the baton. China recently made public its decision to invest over $2 billion into blockchain and crypto in the coming years.

The country is also on the brink of launching its own digital currency, making use of blockchain tokens, without actually delving into the forefather of cryptocurrency, Bitcoin, or any other similar decentralized entities. 

Meanwhile, the USA is poised to miss the boat. The Western Super Power has been accepting of Bitcoin, and crypto, and blockchain; but never that welcoming. Perhaps it is their close association of Bitcoin to the power of the rest of the ecosystem that is holding them back. 

Whatever the case is, the calls in the US for the countries regulators, enterprises, and government to get on board and push for a drive to adopt this technology are growing louder. 

These calls grew in earnest when Libra, a Facebook initiative, was shunned and eyed with suspicion by the US Senate when others felt it had the chance to be the countries blockchain saving grace. 

In October, Sen. Mike Rounds (R-S.D.) wrote to Libra Association members leading with them to stay their course for the sake of America’s innovation excellence. The calls are starting to be echoed by some of the cryptocurrency’s bigger voices.

Bitcoin Bull and former hedge fund manager Mike Novogratz took to Twitter to drive this point home too. 

“And if we don’t transition to a digital world that will change. We are way behind on a crypto USD. China is coming, and coming fast. They are way ahead in fintech. Their President just publicly claimed his support to all things blockchain. We risk losing our reserve status,” he wrote in response to a Tweet that outlined the importance of the US dollar. 

Even Joe Lubin, the co-founder of Ethereum, spoke about China and its growing blockchain and crypto environment and how the country can leverage the tech to its benefits. 

“I assume it [the Chinese digital currency] is going to be exactly what Chinese leadership thinks is most beneficial to Chinese leadership. Hopefully that’s also open and we can interoperate with it, but I don’t know. The country could do the calculation and decide there needs to be a firewall around it, or it could do the calculation and decide, “hey, this is an incredible vector for destroying the American reserve currency status,” which is probably my guess,” he told Fobes

Darryn Pollock
Darryn has been interested in the blockchain and cryptocurrency space since he heard about Bitcoin in 2015. He then decided to use his journalism degree to report on this fascinating fintech space in 2016, and has not looked back since.

Nugget’s News: Crypto Market Update 11th November

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