Coinbase CEO Brian Armstrong argues that China’s central bank’s (CBDC) digital currency will pose a threat to the US. Armstrong sees the CBDC as a development that will weaken the reserve currency of the United States in the long run.

As the crypto entrepreneur points out, these concerns have already been discussed with heads of authorities and legislators.

Background: Brian Armstrong met with Jerome Powell and Paul Ryan two months ago, on May 11. However, the meeting was not made public until Powell’s calendar of meetings was published last Friday, July 2, 2021.

According to it, the meeting between former House Speaker Paul Ryan, Coinbase CEO Brian Armstrong and Chairman Powel lasted 30 minutes.

The meeting took place before the Federal Reserve announced the upcoming release of a “discussion paper” on CBDC (Central Bank Digital Currency).

At the moment, no one can say why the former representative was there. Now works with Solamere Capital-an investment firm engaged in private equity.

Brian Armstrong in conversation

The calendar of meetings, which later went public, did not indicate which topics were discussed. But tweets from Armstrong suggest that the meeting was meant to dispel lawmakers ‘ doubts about cryptocurrencies like Bitcoin or Ethereum – and to gain more insight into the regulatory issues surrounding the technology.

In his tweets, the Coinbase CEO mentions that he has expressed his opinion about the CBDC testing China.

China had begun testing the digital yuan on May 1 and 5, when consumers received ¥181,000 (£6) to shop with. But even before the test in May, China had developed a strategy to let 500,000 consumers in 11 regions participate in the test.

First, consumers had to download an app to get a wallet that allowed them to spend the digital currency while getting some discounts at participating stores. The results of these tests were positive.

Brian Armstrong now says that China’s digital currency is a threat to the US.

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Therefore, Armstrong argues: the US must be quick in creating its own digital currency or there will be an immediate threat to the US Federal Reserve.

After expressing his concerns at the meeting, Brian Armstrong later announced that the U.S. will begin research on implementing a CBDC.

Will the US issue its own central bank digital currency?

Earlier, on October 19, 2020, US Federal Chairman Jerome Powell had stated that the US should issue a CBDC. He spoke on this panel of the International Monetary Fund about” cross-border ” payments.

Powel, the chairman at the time, stressed the need to focus above all on executing the CBDC properly – and not necessarily being the first country to introduce it. True, nine months later, Powell still emphasizes this. However, in May, the chairman mentioned plans to publish a discussion on CBDC and digital payments in the summer of 2021.

While the US has not yet published the paper, China’s pursuit of its own CBDC is becoming increasingly credible. But, as Powell said, it’s not about doing it first – it’s about doing it right.

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Text credits: Newsbtc

Last updated on July 5, 2021

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