Peter Thiel fears China may be using Bitcoin as a weapon

Peter Thiel

Shots fired! PayPal cofounder and Bitcoin investor Peter Thiel has fired off a warning. He is of the view that Bitcoin could be a Chinese weapon against the United States. That is, a financial weapon that may be used to dethrone the monetary status of the US dollar.

The billionaire is best known as the cofounder of PayPal, Palantir Technologies, and Founders Fund, and now runs his investment firm Thiel Capital.

He was speaking with former US Secretary of State Mike Pompeo at a virtual roundtable hosted by the Richard Nixon Foundation on Wednesday. His view being that the cryptocurrency could pose a threat to the reserve currency status of the US dollar.

This is assuming that China is going long in Bitcoin.

said that Bitcoin threatens fiat money, but it especially threatens the US dollar. In his view, China would like to see two global reserve currencies, rather than the dollar being the default reserve.

like to see two global reserve currencies, rather than the dollar being the default reserve.

Yet at the same time, it does not want its renminbi to fill that role, as the country has used the euro in part as a weapon against the US dollar. That did not go as well, so now China is trying to elevate Bitcoin.

Thiel further states that the United States should be asking some tougher questions about exactly how the world’s most popular cryptocurrency works — at least from a geopolitical perspective.

Since leaving the tech industry in 2018, Theil has been an outspoken critic of Silicon Valley, claiming companies like Google and Facebook pose threats to the US given their ties to China. His latest warning fire on crypto appears to be from the same canon.

What are your thoughts here?

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