Avichal Garg, co-founder and CEO of Electric Capital, is convinced that the only way the US can catch up with China in the digital currency war is to use a privacy-focused cryptocurrency.
Garg said that the Chinese are already ahead of the United States in the digital currency race – DCEP, or electronic payments for digital currency, will be launched by the end of the year. This is why it is not enough to create a competitive digital dollar given the time it takes to develop.
“The Chinese system […] will be on the market for 5 to 10 years before the United States introduces its alternative.”
Garg argues that instead of developing its own product, the US government should support initiatives from stack coins based on US dollars such as the USDT.
By loosening the regulations for these stacked coins, linked to the US dollar and under US jurisdiction, the US can use it as a force to compete with China in the digital currency market.
“I think in 12-24 months they can cover all these hybrid cryptocurrencies.”
However, Garg is convinced that the United States is likely to fail if it only competes with China for technology. Finally, in order to have a competitive hedge, the United States must offer it an authoritarian regime that China cannot offer, that is, a privacy-focused, censorship-resistant digital currency.
To do this, the United States must adapt to the crypto-community and strengthen the crypto-networks that codify democratic values.
“The best way for them [the United States] to compete is to really use the best features of the cryptocurrency and use it as a kind of weapon against China.”
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