- US Senator says China’s crypto hostility is a chance for the US to promote economic liberty.
- Becoming a haven for innovative blockchain technology could make the US a global financial leader.
China’s crypto crackdown presents a big opportunity for the US to promote economic liberty by promoting innovative blockchain technology and thereby raising the standards of living for all citizens, according to Pennsylvania senator Pat Toomey.
Crypto-friendly Toomey wrote on Twitter that the US government should use Beijing’s hostility towards economic freedom to embrace blockchain technology innovations for the benefit of the finance sector.
Beijing is so hostile to economic freedom they cannot even tolerate their people participating in what’s arguably the most exciting innovation in finance for decades. Economic liberty leads to faster growth, and ultimately, a higher standard of living for all.
China’s race to stay ahead of innovation.
China practices the authoritarian governance model on its citizens, with multiple reported incidences of restrictions on human rights such as freedom of speech, religion, and economic freedom. For instance, Chinese citizens can only convert or purchase up to $50,000 worth of foreign currency per year.
Additionally, China has banned major services on the internet, such as search engines, Social media sites, news websites, and payments networks, and in their place established similar services that are government-controlled. There is no mainstream access to platforms like Twitter, Facebook, YouTube, PayPal, Google, BBC, and Reuters.
China’s war is seemingly on technology platforms that empower people. These restrictions cut off Chinese citizens-over 1 billion people- from mainstream participation with other people worldwide.
Most of the technology in the world has previously been developed around centralization, but the advent of the decentralized internet is completely changed the playing field.
Analysts speculate that China is deeply perturbed by the power of an open monetary network like Bitcoin. Up until recently, Bitcoin mining in China accounted for over 65 percent of the total network hashrate. However, analysts have said that the 2021 (still ongoing) crackdown on mining farms as far as Mongolia has permanently changed the Bitcoin hashrate distribution.
Decentralized applications such as cryptocurrency wallets are hard to track and make it easy for people to make financial transactions outside the government’s radar. It is simply hard to track, unlike the digital Yuan currently being extensively tested for effective integration.
Additionally, China has issued multiple bans on all cryptocurrencies over the years, with the latest ban receiving a considerable amount of jest from the Cryptocurrency community as basic FUD.
The US could choose to promote blockchain technology in finance
.In contrast to China’s active approach against cryptocurrencies, the US has been accused of passivity. However, there’s an opportunity for the government through regulation. It could choose to create a conducive regulated environment for blockchain technology to evolve, especially in the financial sector.
According to the World Economic Forum, cryptocurrencies can enable financial inclusion if people have the opportunity to participate.
Blockchain technology and the cryptocurrencies that use it are creating open democratic financial systems.
Moreover, all major stablecoins worth over $100 billion are backed by the US dollar. This gives the US an edge over China, but it also means that the future of US global leadership in finance rests in embracing blockchain technology.