Coinbase CEO Brian Armstrong said that China is preparing to take advantage of restrictive crypto rules in the US that inadvertently redirect innovation overseas.
Coinbase CEO Makes New Call to US Officials Saying Threat From China Is Increasing
Talking about Alipay and Tencent payment systems, Armstrong stated, "The United States and other democratic countries are faced with digital systems backed by an ambitious enemy, China."
China, which recently launched its digital yuan, aims to directly challenge the US dollar and its role in global trade.
Armstrong said it "should not come as a surprise" for Hong Kong to position itself as a new crypto hub.
Armstrong's comments come amid growing speculation that China may warm up to the industry after state broadcaster China Central Television aired an episode about cryptocurrencies featuring the Bitcoin logo earlier this month.
Meanwhile, Hong Kong's Securities and Futures Commission published results last week on proposed regulatory requirements for virtual asset trading, which will go into effect on June 1.
Coinbase has been in a long-running dispute with the US Securities and Exchange Commission over its desire for new crypto rules.
He's reaching out to the public in Washington, D.C. by airing a new TV spot in which Armstrong says he's worried the United States may face a national security issue as it has seen after many advances in 5G technology and semiconductors are offshored.
"It is important for American technology leadership and national security that this industry is built in America," Armstrong said.
*Not investment advice.