Posted 2 years ago | by Bethany Armstrong
In 1955, when the United States announced plans to launch a space satellite, the announcement also created a race between the United States and Russia to see who would make the most innovative and historical space development. Landing on the moon was a historical moment for the U.S., but it also indicated that the U.S. was the leader in space science.
Fast forward to the 21st century.
The race is not space related, but it is internet and technology related. Blockchain technology and cryptocurrency are two modern internet and new technology advancements that people, specifically governments, must decide whether to embrace or reject.
At this point, the United States government does not appear to be overly receptive to the innovations of blockchain technology or cryptocurrency. U.S. lawmakers are becoming harsh critics of internet technologies.
In a recent interview with Crypto Beadles, American venture capital investor Tim Draper says that the U.S. is at a pivotal point. If the United States do not begin to embrace blockchain technology and cryptocurrency, they will drive out the innovators, engineers, tech start ups to other countries who are more welcoming.
While China has most recently been in the news for tariffs discussion between President Trump and People's Republic of China President Xi Jinping. China is quietly following the reactions of U.S. lawmakers regarding cryptocurrency and blockchain technology. When the U.S. raises objections and harsh criticisms, China indirectly responds with praises and welcoming statements.
Up until 2017, China had banned all cryptocurrency. Earlier in 2019, China's Central Bank announced that it would form its own cryptocurrency. China's cryptocurrency is a DCEP (Digital Currency Electronic Payment) as a domestic stable coin rival the Libra model.
While the United States haven't banned cryptocurrency, the U.S. has begun to put heavy pressure on cryptocurrency projects. U.S. lawmakers have done everything it can to stop Libra, Facebook's cryptocurrency project. The U.S. has also been very critical of Telegram's crypto project.
Blockchain technology has become the newest object of China's attention. President Xi stated that China needs to "needs to “seize the opportunity” afforded by blockchain technology". The timing of this statement comes directly after Mark Zuckerberg testified before U.S. lawmakers regarding the Libra Association.
In the meantime, China and the U.S. are close to finalizing the trade deals. Finalizing the trade deals could have a powerful impact on the market.