Peter Thiel, co-founder of PayPal, believes China could use Bitcoin against the United States

It is no longer a secret. China, a true nemesis of the United States, has experimented with cryptographic technology. This is in an attempt to free its economy from US sanctions and US dollar hegemony. 

Because Thiel thinks China could arm itself with Bitcoin

Speaking at a virtual event held during a Nixon seminar, PayPal co-founder Peter Thiel talked about how China could make this a reality. According to Thiel, China could use Bitcoin as a preferred "weapon".

“Even though I'm kind of a pro-cryptocurrency and pro-Bitcoin maximalist, I wonder if at this point Bitcoin should also be viewed in part as a financial weapon that China could use against the US, threatening fiat money, but in particular the US dollar ".

The question he was answering wasn't exactly about the world's largest and oldest cryptocurrency, but about China exploring the development of its own state-backed cryptocurrency: the digital yuan. The interviewer was questioned that the upcoming digital currency of the Chinese Central Bank (CBDC) poses a risk to the US dollar.

Thiel espoused the view that the digital yuan is no threat. He believes that the digital yuan which will be under the absolute control of the nation's central bank will actually give the state "a totalitarian measuring device."

A real battle for hegemony

The real concern, according to Thiel, is that bitcoin has the potential to serve as a global reserve currency. In essence, the fundamental and technical qualities of cryptocurrency are blossoming, demonstrating an increasingly strong reason to replace the dollar as the world's reserve currency.

Under such circumstances, Thiel says, "If China is long on Bitcoin, then perhaps from a geopolitical perspective the US should ask itself some tough questions about how exactly this all works."

Tech tycoon and billionaire Peter Thiel has been a bitcoin advocate from the very beginning. In October 2019, it invested $ 50 million in the Texas-based bitcoin startup Layer1, thus denying China's supremacy in the mining sector.

Is the Chinese currency already available?

As far as we know, China's CBDC is not ready yet, but it already seems possible to buy it. For example on the Yuan Pay website, which we also wrote one about detailed review, it would already seem possible to do so. Moreover, at the moment buying this virtual currency is very cheap, a bit like what happened in the first days with bitcoin. If the forecasts prove correct, the digital yuan could reach the same levels, if not higher, than the BTC. At this point, those who have been able to take advantage of it from the first moment, could find themselves in their hands a token that is worth gold, indeed more! At this point, we just have to wish you the best of luck and leave a comment below to describe your experience.