Peter Thiel, a venture capitalist as well as the founder of PayPal has recently made a concerning claim about Chinese intentions. He shared his thoughts about what the Chinese Government may be up to by supporting Bitcoin (BTC).
He claimed that the Chinese Government might be trying to undermine the monetary and foreign policy of the United States with the help of Bitcoin (BTC). He stated that before Bitcoin (BTC), the Chinese Government tried achieving the same with the help of the Euro.
Peter Thiel shared his views around the recent activities of the Chinese Government during a virtual event. As per sources, the virtual event was hosted by the Richard Nixon Foundation, which is a non-profit conservative organization.
He made the above comment while he was talking about the potential of the central bank digital currency that the Chinese Central Bank has been working on for a while.
He made the statement when he was asked if the digital currency (e-yuan) being worked on by the Chinese Government poses any threat to the reign of the United States dollar.
He was asked if China will be able to de-thrown the United States dollar as the top reserve country. This is when he made the statement why China is using Bitcoin (BTC) against the United States dollar.
Over the course of time, Peter Thiel has emerged as the proponent of Bitcoin (BTC). He stated that in order to erode the hegemony of the dollar, China might use Bitcoin (BTC) as a tool.
He stated that China has never liked the idea of having the United States dollar as a reserve currency. Therefore, China will try to gain the lead in order to become the top reserve currency and take USD out of the challenge.
He stated that although he is a huge supporter of Bitcoin (BTC), yet he thinks that China will continue using it as a financial weapon against the USD. He added that Bitcoin (BTC) is being viewed as a threat to the entire fiat currency industry. However, it poses more of a threat to the USD than any other currency in the world.
In the past few years, China has started using the euro in order to carry out oil trades and it has been doing it to undermine USD. This is what China tried doing in the past decade as it used the euro as a weapon to bring down the value of the USD as the top reserve currency.
However, things did not work out as China had planned with Euro and now, it has upped its game with the adoption of Bitcoin (BTC). Bitcoin (BTC) has been all over the news in the past couple of years for its promising performance. It has been gaining a lot of superiority over other assets such as gold and there are speculations that soon, Bitcoin (BTC) will beat USD.