Market Institute President Charles Sauer is out with a piece in Issues & Insights on China’s dominance of cryptocurrencies.
Here is an excerpt:
“Nearly two years ago, I warned that China’s dominance in cryptocurrencies poses a serious threat to American economic interests. Fast forward to today — China is on the verge of delivering a heavy blow that could set the United States back decades in our efforts to ensure the dollar is the world’s reserve currency.
Now, I have never been much of a China alarmist, and I am not becoming one. However, I am an innovation whistleblower, cheerleader, and optimist.
Our status in the world is thanks to U.S. innovators, entrepreneurs, and the freedom that our government has given these groups to operate. And, as the U.S. economy has developed into a service economy, we have become more and more reliant on cutting edge inventions and efficient solutions.
This is a good thing. Other countries have taken up much of the most intensive, dirty, and dangerous jobs. And, our unemployment rate pre-pandemic was at historical lows. While many people in the U.S. still work in some of the most physical and dangerous jobs possible — fewer of these positions are now needed — and more jobs exist that are easier on the body and pose less of a mortal risk.
The trick is keeping our economic position in the world. And, it is well known that China is coming for the title.
While China is still several generations of technological innovation behind the U.S. — that still isn’t a very big lead and can be measured in months instead of years. However, China already has the lead in cryptocurrency and while still a few important inflection points and world events away, these innovations have given them a possible tool to supplant the dollar as the preferred reserve currency.”