The United States is Worried About Chinese Dominance in the Cryptocurrency Industry

The United States is worried about Chinese dominance in the cryptocurrency industry. According to the Washington Examiner, the U.S. intelligence community is raising concerns about China’s influence over digital currencies. The Director of National Intelligence John Ratcliffe wrote a letter to the U.S. Securities and Exchange Commission (SEC) explaining the situation. 

The United States vs China – Cryptocurrency Dominance

The United States and China are currently rivals in the international landscape. In every single way, each of these countries wants to be the best and show it dominates the other. Although we know the United States has the lead in many issues, in the cryptocurrency market the situation is nos so clear. 

The report explains that the Director of National Intelligence John Ratcliffe wrote to the SEC regarding the cryptocurrency market. Specifically, he shared his concerns about China’s dominance in the cryptocurrency market. 

It is worth taking into consideration two main things. China has the largest number of cryptocurrency miners in the world. Miners provide security to blockchain networks, including Bitcoin (BTC). If a country has a large number of miners, it may be possible for it to increase the influence it has on public blockchain networks. 

The second thing is related to how China is moving forward with its plans to launch a national digital currency. With a state-controlled digital currency, it might become difficult for U.S. companies to compete. These two reasons where the two main things mentioned by Mr. Ratcliffe to the SEC. 

At the same time, the Director of National Intelligence requests the SEC to implement clear rules in the cryptocurrency market. This would make it easier to compete against firms based in China. 

A senior intelligence official mentioned about it:

“There are serious national security concerns about China’s control over Bitcoin and Ether. The president’s recent executive order made abundantly clear the threat posed by securities investments that finance Communist Chinese military companies. Digital currency controlled by the CCP could certainly fall into that category.”

He went on saying that the United States cannot allow China to increase its dominance in the cryptocurrency market. These are technologies and innovations that are going to decide who controls the world in the coming decades. 

In recent weeks, we have seen how Bitcoin (BTC) was able to surge to $19,300 and other cryptocurrencies followed. What will happen in the future is just a matter of time.