Ripple CEO Brad Garlinghouse has warned authorities in the United States, about the risk of losing out to China if they do not take cryptocurrency more seriously. Garlinghouse believes that the United States’ reluctance to get involved in the crypto sector could be detrimental in the future.
Garlinghouse made his comments in response to an article that considered the possibility of China’s central bank digital currency (CBDC), dethroning the U.S. dollar’s power. According to the Ripple CEO:
“U.S. regulators: now is the time to step up and lean into digital currencies. Remaining complacent is actually setting us back, while China’s grip on both crypto and fiat payments becomes stronger.”
Today, the U.S. dollar is largely the global reserve currency. The dollar is considered so strong that many countries, including China, are uncomfortable with the power and are looking for ways to circumvent any reliance on the dollar.
Last year, China decided to fast track the development of digital yuan. At the time, many believed that Facebook’s announcement of the Libra was the main reason China decided to do this. Others have opined however, that the Libra reason stands next to Beijing’s efforts to create alternatives to the dollar.
China has already begun testing its CBDC in four cities in the country.
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