Coinbase CEO has cautioned US policymakers against disregarding the importance of crypto beyond individual transactions, stating that doing so poses a threat to America’s longstanding position as a global financial leader and innovation hub.
In an opinion piece published by Marketwatch Tuesday, Armstrong highlighted his efforts, along with other industry peers, in advocating for regulatory clarity to safeguard consumers and fully unleash the potential of cryptocurrencies. However, rather than implementing supportive regulations, he noted that the United States was experiencing the rise of enforcement actions and restrictive policies, forcing important players in the crypto sector to migrate offshore.
“By enforcing restrictive policies, the U.S. is inadvertently driving crypto-innovation offshore. That shift will compromise America’s legacy of pioneering technological advancements, and weaken our national security posture,” said Armstrong.
The crypto executive went on to highlight the profound importance of cryptographic blockchains, stressing that they extend beyond financial services and serve as groundbreaking technologies with the potential to revolutionize various industries.
China Could Topple The US.
Armstrong further expressed fear over China toppling the US as the global financial leader, citing the failure to embrace innovation by the US. According to him, the continued deterioration of the US dollar as the global reserve currency was a direct result of policymakers ignoring change.
“Currency has always embodied innovation”, he said, noting that throughout history, the Currency has always embodied innovation, such as the transition from bartering to physical coins and portable paper currency to now cashless transactions.
In his view, while the US remains hesitant about adopting blockchain technology, China has already made significant strides in this area. He particularly highlighted Chinese tech giants, including Alipay and Tencent, which have established integrated payment systems that offer immediate access to diverse services. Additionally, he noted that with the introduction of the digital yuan, China aims to directly challenge the longstanding dominance of the US dollar in global trade.
“Given these moves and China’s strategy to leverage financial technology to protect its own national interests, it should come as no surprise that Hong Kong is positioning itself as a global crypto hub,” he said.
Additionally, Armstrong cautioned that China is not the only competitor in this race, as other established financial centres like the UK, United Arab Emirates, Brazil, Japan, the European Union, Australia, and Singapore are also actively working towards becoming cryptocurrency hubs.
That said, he urged policymakers to implement intelligent and customized regulations akin to the regulatory framework that shaped the internet age in the 1990s and early 2000s, stating that “if we fall short today, the next generation of Americans will pay the price.”