Peter Thiel, co-founder of PayPal and a venture capitalist, warned that China’s central government could support Bitcoin as a way to undermine US foreign and monetary policy.
But he added that she tried to use the euro in the same way.
In a hypothetical event hosted by the nonprofit Richard Nixon Corporation, Thiel commented on whether a digital currency issued by the Bank of China or the CBDC could threaten the US dollar’s position as a global reserve currency.
Although Thiel, known for supporting Bitcoin, suggested that “China’s domestic stable currency” would be nothing more than “a kind of holistic instrument,” he added that China could look at Bitcoin as a tool to undermine the dominance of the dollar. . :
“From China’s perspective, they do not like the United States having this reserve currency because it gives too much influence over the oil supply chain and everything,” he said, adding:
“Although I am a proponent of cryptocurrency and a bitcoin advocate, I wonder if bitcoin should be seen in part as China’s economic weapon against the United States, as it threatens paper money, but especially the US dollar.”
Thiel hinted at China’s attempt to classify its oil trade in the euro in recent years in an attempt to undermine the global dollar’s position, saying: ‘I think the euro, you can see it as part of China’s weapon against the dollar – it really has not worked the last decade, but for China I would like to see it. Two reserve currencies, such as the euro. ”
The venture capitalist suggested that China does not really want the renminbi to become a global reserve currency, and points out that the government must “open its capital accounts” among other measures “they really do not want to do.”
Thus, Thiel concludes that supporting Bitcoin gives China a great way to weaken the dollar’s international status:
“China wants to do something to weaken [the dollar] – perennial bitcoin in China, and perhaps from a geopolitical perspective, the United States should ask some tougher questions about how exactly this works.”