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US must embrace Bitcoin to counter Chinese ‘financial attack’ – Pomp

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Bitcoin (BTC) can undermine the US dollar if the US does not play a leading role in its acceptance, argues Anthony Pompliano.

Talk to UKTN On April 8, Morgan Creek Digital co-founder followed up on a warning from investor Peter Thiel that China could use Bitcoin to destabilize USD hegemony.

Thiel warns of Bitcoin threat

“I wonder at this point if Bitcoin should be viewed in part as a Chinese financial weapon against the United States; it threatens fiat currency but above all it threatens the US dollar,” Thiel said during an appearance at the seminar. Nixon.

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When asked if this was a potential problem, Pompliano was quick to point out that Thiel was not an opponent of Bitcoin, but that this, like the internet, could have consequences for the both positive and negative for Washington if policymakers made ill-considered decisions. .

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“I think what we need to understand is that Bitcoin is an open and decentralized protocol,” he explained to UKTN’s “Squawk Box” segment.

“Everyone in the world has the option to use it, just like the Internet … and so just because other countries, maybe opposed to the United States or not, are going to use it, it doesn’t want to not say [Thiel] takes an anti-Bitcoin stance; in fact, it is quite the opposite. “

The legal landscape surrounding Bitcoin in the United States remains a patchwork, despite some states, notably Wyoming and Florida, actively seeking to become a safe haven for its adoption.

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“I think that [Thiel] fact here is that he says, “Look, there is global competition going on here and there are other countries that are going to try to use it to try to destabilize or financially attack the states. -United “”, continued Pompliano.

“What we need is for the United States to be the leader here; we have to embrace it, so we have to make sure that we use this technology to continue to be a leader on the world stage.”

A familiar headache

Interest from institutional and retail investors in the cryptocurrency as a whole remains strong thanks to the price hike this year.

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Under these moves, however, a separate narrative continues to unfold, one involving state-driven power shifts for some – in particular – the power of the Bitcoin network.

This so-called “hash war” could still fall into the hands of any state, including those targeted by US sanctions in recent years, such as Iran and Venezuela.

China’s place in the Bitcoin mining game, meanwhile, has been well known for years, despite the transaction ban and the country’s central bank working on a digital yuan project.