US spy chief warns of China’s dominance in digital currencies

The director of the U.S. National Intelligence, John Ratcliffe, proposed to SEC chair Jay Clayton to discuss the threat posed by China, which has been stepping up its activity in the cryptocurrency space. The appeal is contained in a letter that came into the possession of the Washington Examiner.

In it, Ratcliffe urged his colleague to draft rules that would raise the competitiveness of American cryptocurrency firms and remove barriers to innovation. He noted China’s control of more than half of Bitcoin’s hash rate, as well as advances in the development of a national digital currency (CBDC).

“We cannot allow Beijing to dominate the technologies and innovations that will determine who will govern the world for decades to come — from artificial intelligence to digital currency,” said a National Intelligence official speaking on condition of anonymity.

Back in October, Xi Jinping said that China should become a leader in blockchain and its integration with related technologies.

Chinese authorities anticipate that the launch of the CBDC will help strengthen the yuan’s position on the international stage and break the dollar’s dominance.

Matthew Graham, head of Sino Global Capital, expressed the view that a digital yuan-based payment system would replace the morally outdated SWIFT system built on the American currency.

Analysts at Deutsche Bank also suggested that the use of CBDC in international trade could undermine the dollar’s dominance.

How China managed to become a leader in monetary innovation thanks to the digital yuan (DCEP)

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