Chris Larsen: US loses to China in digital currencies

Chris Larsen, chairman and co-founder of Ripple Labs Inc, believes the U.S. is losingThe Arms Race in the Digitalcurrency against China.

In a recent interview, Ripple co-founder Chris Larsen said that US regulators give priority to China, delaying the development of cryptocurrencies and blockchain technology.

China's control of the next generation financial system, driven by decentralized developments, could be a devastating step for the United States and its allies.

At a time when China is expanding into the cryptocurrency market, the United States should focus on competing with it. 

China is now well ahead of the U.S. in investing in blockchain and digital currency.Companies across the country have embraced blockchain and become more involved in familiarizing themselves with the system.In addition, a large percentage of miners of the two largest cryptocurrencies – Bitcoin and Ethereum – are located in the country.

According to Larsen, if the U.S. loses the digital currency arms race,  China couldinfluence America's ability to make defense payments to its allies, or block U.S. banks and companies and control the timing of their payments.

Larsen concluded that even if there is little chance that China will be able to do this, the United States must stop this and ensure strong competition for the country.

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