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Peter Thiel: Bitcoin may be a Chinese financial weapon, says the Paypal co-founder

PayPal co-founder Peter Thiel, opined in a virtual event on Wednesday in whether or not China is ready to win the United States using financial weapons.

The weapon that Thiel says China is using? Bitcoin.

“I do wonder whether at this point, Bitcoin should also be thought [of] in part as a Chinese financial weapon against the U.S.,” Thiel said during an appearance at a virtual event held for members of the Richard Nixon Foundation. “It threatens fiat money, but it especially threatens the U.S. dollar.” He added: “[If] China’s long Bitcoin, perhaps from a geopolitical perspective, the U.S. should be asking some tougher questions about exactly how that works.”

The question that Thiel was supposedly answering was not about Bitcoin itself, but about China’s plan to create a digital yuan. Moderator Hugh Hewitt wanted to know if the digital yuan is a “threat to the dollar and its dominance of world markets”.

Thiel’s opinion is that it is not; he discarded the currency, which would be issued by China’s central bank, as “a kind of totalitarian measuring device”.

The real concern, said Thiel, is Bitcoin, because it is more likely to serve as a functional reserve currency. The less dominant the dollar, the less affected by American monetary and foreign policy.

Peter Thiel, Paypal and Palantir Co-Founder

Peter Thiel, Paypal and Palantir Co-Founder (Image: Los Angeles Times)

The seminar, entitled “Big Tech and China: What do we need from Silicon Valley?”, Also included former Secretary of State Mike Pompeo and former national security adviser Robert O’Brien.

Pompeo agreed that a digital yuan “has a huge impact on [China’s] surveillance capacity”, although he seems to claim that such a currency would also allow international transactions that could avoid US sanctions: “They want to make sure that when the secretary Pompeo issue sanctions against the Iranian leadership, there will be a way to buy Iranian oil. “

Thiel has invested in several cryptocurrency ventures, including Bitcoin mining company Layer1 Technologies and the blockchain development platform Alchemy.

With informations: Fortune

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