CEO of Reaper Financial blockchain company Patrick L. Riley has shared his take on the role of
«China wants to stop XRP adoption in US»
Riley tweeted that China has been manipulating Bitcoin for years and did not «sic its dogs» on the leading crypto, even though it has banned crypto trading and mining in the country. What China wanted indeed, he believes, is not to allow XRP adoption in the U.S. since it keeps America «from going under.»
In this regard, he stated that the SEC lawsuit against Ripple Labs is «not just a court case, it’s a war.»
China didn’t sic their dogs on #Bitcoin, they’ve been manipulating that for years. They needed to stop $XRP adoption in the U.S. because they know it keeps us from going under. This isn’t just a court case, it’s a war.@Ripple https://t.co/KjehW1Svy2
— PATRICK L. RILEY (@RealReaperCEO) January 6, 2023
The legal battle against Ripple was kicked off by the U.S. securities regulator in December 2020, and it still continues as the parties to this case keep scoring small victories against each other. The Ripple CEO and the XRP army hope that the case will be settled in 2023, Garlinghouse in particular believes that it may happen in the first quarter of it.
Does China care about XRP?
China has been working on its own central bank digital currency, CBDC, digital yuan. It has been working on it for several years and doubled its efforts when Facebook began its attempts to create a stablecoin backed by a basket of most popular fiat currencies in 2019-2020.
Facebook’s project was put away to a distant shelf, while the Chinese one has been tested with real users and their wallets already.
Back in 2019, there was a lot of talk on crypto Twitter by influencers, such as Anthony Pompliano, that the U.S. should launch digital USD as soon as possible. They believed that if China launches their CBDC before the U.S., China will surpass the U.S. in the forming sphere of digital finance globally.
The Fed Reserve then began looking into creating what was called a «FedCoin.» However, some in the crypto community criticized the idea of the U.S. creating a CBDC. Among them was the famous whistle-blower Edward Snowden. He called CBDCs a «perversion» and «cryptofascist currency.»
Many on crypto Twitter also shared their concerns that by launching digital yuan, the Chinese government will tighten its control over the population’s personal finance, earnings and spending and were worried that the same may happen in the U.S. should the Fed launch digital USD.