Peter Thiel urged the US government to reassess China’s relationship with Bitcoin from a geopolitical perspective.
China and Bitcoin
Peter Thiel, co-founder and venture capitalist of PayPal, warned that the Chinese central government could support Bitcoin as a way to undermine US foreign and monetary policy.
However, he added that he was trying to use the Euro in the same way.
Speaking at a virtual event hosted by the conservative nonprofit Richard Nixon Foundation, Thiel commented on whether the digital currency issued by China’s central bank or the CBDC could threaten the status of the global reserve currency.
Thiel, known to be pro-Bitcoin, suggested that “an internal stablecoin in China” would mean little more than “some kind of totalitarian meter”, adding that China could see Bitcoin as a tool to erode the hegemony of the dollar:
“From China’s point of view, they don’t like the US to have this reserve currency because it gives a lot of leverage over the oil supply chains and all kinds of things. Even though I am a pro-crypto, pro-Bitcoin maximalist, at this point I wonder whether Bitcoin should be considered partly a Chinese financial weapon against the United States where it threatens fiat money. However, such a situation particularly threatens the US dollar. ”
Thiel is using the quote “I think you can think of the euro as part of a Chinese weapon against the dollar”, alluding to China’s efforts to express its oil trade in euros in order to weaken the dollar’s global position.
The risk capitalist stated that China does not really want the renminbi to become the global reserve currency, and the government will have to “open capital accounts” along with other measures that they “don’t really want to do”.
Thiel concludes that backing Bitcoin offers China an elegant way to weaken the dollar’s international stance.