Could the next Cold War already be in place? Well, it is according to a Ripple Executive, and apparently, the United States is not in first place. The US is said to be floundering due to strict regulations hampering innovative cryptocurrency practices.
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Reviewing Ripple’s Position That The US Is Not As Welcoming To Crypto As China
Chris Larsen, a co-founder at Ripple, wrote a piece for The Hill on the 21st of August. He stated that China’s efforts to digitize the yuan has led to a unique opportunity to subvert the US dollar. Larsen then goes on to build out the causes for the East being ahead of the game.
One of the main reasons is that China has wide acceptance of digital payments. The primary vehicle for these payments is through companies such as Alipay and WeChat. In addition, China is very close to issuing its own digitized version of its national currency. This is in stark contrast to the US who has no concrete plans to digitize the dollar at this point.
Larsen points out that currently, 65% of all crypto-mining occurs within China’s borders. This gives the nation immense power over the blockchain industry. Larsen also added that they might even be able to undo transactions. Moreover, as China has expanded into Hong Kong, they now control two main financial hubs within the global economy.
What Is The United States To Do About This Situation?
Larsen stated that the first step is for the US government to recognize that fintech firms are essential. He believes that these firms are necessary for national security. Furthermore, the United States should start work on digitizing the dollar as soon as possible. Moreover, Silicon Valley needs to become home for an enviable fintech hub on a global scale.
The article penned by Larsen has surfaced at a time when many are wondering how Ripple will be classified. In other words, will the Federal Reserve mark it as a security? Ripple has been in court over allegations that it is trading as unlicensed security in the past.
Iran Takes Down Unregistered Crypto Miners
The Iranian government has offered individuals who provide information on illegal activities rewards. These informants have aided Tavanir, the electricity supplier in Iran, to close 1100 covert crypto mining farms. Tavanir has stated that they are unable to locate persons based on electricity consumption alone.
Individuals who do supply information can expect 100 million rials (which is $480 USD) in exchange for their assistance. The Iranian government stated that large power plants might engage in Bitcoin mining. The caveat is that these companies may not make use of any state-sponsored fuel.
Iranian legislation requires that all parties engaging in crypto mining must register with the Ministry of Industry, Mines and Trade. They must also provide information on the type of hardware they are using and what the size of their farm is. Those who are conducting illegal activities will face fines.