China is '6 years ahead' of US in building blockchain payment system, CEO says

August 2, 2021 at 10:27 AM·3 min read

The U.S. has fallen significantly behind China in the race to develop a blockchain-based payment system, Pantera Capital founder and CEO Dan Morehead told Yahoo Finance in a recent interview.

“China’s six years ahead of the United States in building a blockchain-based payment system,” Morehead said in a Friday segment on blockchain technology with Yahoo Finance Live.

China’s dominance in the blockchain space may propel America into action in the near future, according to Morehead, whose company is a hedge fund specializing in cryptocurrencies.

“The former CFTC Chairman Chris Giancarlo wrote a great op-ed in the Journal in 2019, calling it America’s ‘Sputnik’ moment, when China announced their blockchain,” Morehead said. “And there is going be a competition amongst nations to have the payment rail of the future.”

China accounted for 46% of the total bitcoin mining power in the world as of April 2021, according to research from the Cambridge Centre for Alternative Finance (CCAF) released on July 15. Still, this data came out before a bitcoin crackdown in China last month, spurring some miners to decamp for other countries.

Before the recent crackdown on bitcoin, China had already emphasized integrating blockchain technology into its financial system in a variety of ways. Back in 2020, China announced the first blockchain networks to be built and maintained by a central government. The network ran through 100 cities and was supported by both public and private enterprises.

HONG KONG, CHINA - 2021/07/22: Cryptocurrency electronic cash Bitcoin banner advertisement seen in Hong Kong. (Photo by Budrul Chukrut/SOPA Images/LightRocket via Getty Images) (SOPA Images via Getty Images)

China has also had its own crypto brand in the makings for several years, with this year witnessing the launching of the digital Yuan, China’s own digital currency. The currency operates side-by-side with bills and coins as of now, though it remains unclear whether it will totally replace physical money.

Though China has been one of the first nations to hop on the proverbial blockchain train, other countries have made significant strides, too. El Salvador made waves in crypto news after announcing earlier this summer that bitcoin would be accepted as legal tender, becoming the first country to do so. In Nigeria, crypto trading volumes have been extremely high: A 2020 online survey from Statista found that 32% of Nigerian respondents said they owned or used cryptocurrencies, the highest of any country surveyed.

Moreover, Kazakhstan recently saw a six-fold spike in its bitcoin mining share between September 2019 and April 2021, according to the July 15 research from the CCAF. During that same period, the U.S. saw its share go from 4.1% to 16.8%.

In the U.S., companies like IBM (IBM) have utilized blockchain technology to help support supply chains and construct a digital marketplace for intellectual property through non-fungible tokens (NFTs).

“I think two or three years from now, everyone will realize that blockchain is an asset class by itself and they’ll have a blockchain team and a blockchain allocation,” Morehead said.

Ihsaan Fanusie is a writer at Yahoo Finance. Follow him on Twitter @IFanusie.

More from Ihsaan:

These stocks are the top picks for millennials and Gen Z

Why banning fans at the Olympics isn't a total financial loss

Uber, Lyft created ride-hailing shortage: Gig economy expert

Bitcoin to tumble further: oddsmakers bet on drop to $10K

Read the latest cryptocurrency and bitcoin news from Yahoo Finance

Read the latest financial and business news from Yahoo Finance

Follow Yahoo Finance on Twitter, Facebook, Instagram, Flipboard, LinkedIn, YouTube, and reddit

NBC News
3 Americans detained in China are released in prisoner swap and are back in U.S.
Three American citizens who had been detained for years in China were released, a State Department spokesperson said Wednesday.
Associated Press
Human error caused the sinking of a New Zealand navy ship off the coast of Samoa, an inquiry finds
A series of human errors caused a New Zealand navy ship to plough into a reef off the coast of Samoa, where it caught fire and sank, according to the preliminary findings of a military Court of Inquiry into the disaster released on Friday. The ship’s crew did not realize autopilot was engaged, believed something else had gone wrong with the ship, and did not check the HMNZS Manawanui was under manual control as it maintained course towards land, a summary of the inquiry’s first report published on Friday said. All 75 people on board the vessel evacuated safely as the boat foundered about a mile off the coast of Upolu, Samoa, in October.
CBS News
Thanksgiving weather forecast maps show snowstorms, winter cold fronts
Winter storm weather is forecast to bring snow to different parts of the country in the days around Thanksgiving 2024, potentially interrupting travel.
CBS News
Russia bombs Ukraine's energy sector as temperatures plummet
Ukraine's Zelenskyy says Russian "tactics of terror" are clear with the latest massive attack on energy infrastructure as temperatures plummet.
TODAY
Meet Vito, the winner of the 2024 National Dog Show
Vito won the 2024 National Dog Show, which took place on Thanksgiving Day.
CNN
Putin threatens to strike Ukraine again with new missile after wave of attacks on energy
Russian President Vladimir Putin has threatened to strike Ukraine again with a new nuclear-capable ballistic missile following Moscow’s latest widespread attack on critical energy infrastructure.
CBS News
Stowaway caught after getting aboard Delta flight from New York City to Paris
The woman boarded Delta Flight No. 264 from John F. Kennedy International Airport to Paris Charles de Gaulle Airport, CBS News learned. She was discovered while the plane was in midair and was taken into custody in Paris.
AFP
Police fire rubber bullets, tear gas at Georgia protesters after PM delays EU bid
Georgian riot police on Friday deployed tear gas and water cannon against demonstrators protesting a government decision to delay pursuing European Union accession, AFP reporters witnessed.Shortly after midnight, riot police deployed tear gas and water cannon against the peaceful demonstrators.
CBS News
Iowa man decorates neighbors' homes to celebrate wife's love of Christmas
Neighbors are collecting cards for John Reichart and his wife — find out how to send one here.
AFP
Israel PM again warns Iran after top diplomat talks of revising nuclear doctrine
Prime Minister Benjamin Netanyahu said Thursday that Israel would do "everything" to stop Iran acquiring a nuclear weapon after Iran's top diplomat warned it could end its ban on developing one if Western sanctions are reimposed.A 2015 nuclear deal between Tehran and major powers aimed to give Iran relief from crippling Western sanctions in exchange for limiting its nuclear programme to prevent it from developing a weapons capability.
Reuters
High-spending Irish coalition eyes re-election as rival Sinn Fein falters
Ireland's two main governing parties looked on course to return to power in an election on Friday thanks to a giveaway October budget and a loss of momentum by opposition Sinn Fein, a result that would buck a global trend of voters rejecting incumbents. Prime Minister Simon Harris called the election on the heels of a 10.5 billion euro ($11 billion) budget that began to put money into voters' pockets during the campaign, largesse made possible by billions of euros of foreign multinational corporate tax revenues. An opinion poll on Wednesday put Harris' Fine Gael on 20%, level with Sinn Fein and just behind its main coalition partner Fianna Fail on 21%.
Associated Press
Oil field owner sues California over law that would end its Los Angeles-area operations
The owner of an oil field in Los Angeles County is suing the state of California over a law that will require it to stop production and plug its wells or face costly fines. Inglewood Oil Field owner Sentinel Peak argues in the lawsuit, filed this week, that the law, which was signed in September by Gov. Gavin Newsom, is unconstitutional, the Los Angeles Times reported Thursday. It is was one of several laws aiming to reduce pollution by giving local governments more authority to restrict oil and gas operations by shutting down so-called idle wells, which are not in use but have not been properly sealed and closed, and fining companies for operating low-producing oil wells in the Inglewood field.
NBC News
Ukraine's power grid under 'massive attack' from Russia as freezing temperatures set in
Russia launched cruise missile and drone attacks on Ukraine's energy sector, leaving 700,000 homes and businesses without power amid frozen temperatures.
Associated Press
Canada sues Google over alleged anticompetitive practices in online ads
Canada's antitrust watchdog said Thursday it is suing Google over alleged anticompetitive conduct in the tech giant’s online advertising business and wants the company to sell off two of its ad tech services and pay a penalty. The Competition Bureau said that such action is necessary because an investigation into Google found that the company “unlawfully” tied together its ad tech tools to maintain its dominant market position. The matter is now headed for the Competition Tribunal, a quasi-judicial body that hears cases brought forward by the competition commissioner about non-compliance with the Competition Act.
AFP
Putin threatens Kyiv with new hypersonic missile
President Vladimir Putin on Thursday threatened to strike "decision-making centres" in Kyiv with Russia's new hypersonic missile, hours after Moscow pummelled Ukraine's energy grid in an attack that left a million people without power."We do not rule out the use of Oreshnik against the military, military-industrial or decision-making centres, including in Kyiv," Putin told a press conference in the Kazakh capital Astana, referring to the hypersonic missile.
NBC News
Organic eggs sold at Costco recalled over salmonella concerns
Organic eggs sold at Costco are being recalled over concerns they may be contaminated with salmonella.
NBC News
Connecticut's Congress members targeted with bomb threats on Thanksgiving
Most of Connecticut's congressional delegation said they were the subject of bomb threats at their homes as they were preparing to celebrate Thanksgiving, although no bombs ultimately were found.
Associated Press
For the first time, France's Macron calls 1944 killings of West African troops by French a massacre
French President Emmanuel Macron on Thursday for the first time recognized the killing of West African soldiers by the French Army in 1944 as a massacre in a letter addressed to the Senegalese authorities. Macron's move, on the eve of the 80th anniversary of the World War II killings in Thiaroye — a fishing village on the outskirts of the Senegalese capital of Dakar — comes as France’s influence is declining in the region, with Paris losing its sway in the former French colonies in West Africa.
CNN
Four Democratic lawmakers targeted with threats while home for Thanksgiving
At least four Democratic representatives from Connecticut said Thursday they were targeted with bomb threats while home celebrating Thanksgiving with their families.
NBC News
Bird flu detected in second lot of raw milk sold in California, health officials say
California health officials have issued a warning against drinking a second lot of raw milk due to the bird flu virus.

Latest Stories