Ripple’s Brad Garlinghouse Warns China Could Replace The US Dollar

As the tensions between the US and China grow, Ripple’s Brad Garlinghouse warned that America is falling behind China on crypto innovation and that the Asian country could quickly replace the US dollar as we are reading further in the Ripple news today.

China’s work on its central bank digital currency has increased in recent months and the project which has been in production since 2014, is coming even closer to realization and some critics are concerned over the impact this can have for the Dollar’s de facto reserve currency status. For Ripple’s Brad Garlinghouse, China is enhancing its endeavors on the CBDC and this is considered as a call to action. In an interview with the Fox Business, the CEO of Ripple urged the US to take the lead in the wake of China’s proposed crypto. Analogizing the rise of cryptocurrencies in the 2000 tech boom, and the forward stance the US took back then, Garlinghouse stated that the American influence could yield positive results:

 “These are new profound technologies and the US needs to be a leader in this space.”

Turning to the motives behind China’s venturing, he explains the potential of CBDC subverting the US sanctions on the country. For Garlinghouse this is a key component of China’s plan. His concern is shared by members of the US Congress French Hill and Bill Foster and at the end of the month, both of them wrote a letter to the FED Chairman Jerome Powell urging the US to take action to preserve the primacy of the greenback. Both of them were troubled by the increasing wave of fiat-based digital currency and even the European Central Bank member Benoit Coeure noted that the ventures such as China’s CBDC could even become a ‘’contender for the Iron Throne of the dollar’’ as we are reading these days in the blockchain news. Ripple’s Garlinghouse explained that there are some remarks that the US dollar is falling behind:

 “We do have some of the leading companies here based in the united states doing things around crypto. Ripple has been a leader in this space, I think there’s an opportunity to get behind some of these efforts.”