US, China and the race for digital currency

Paypal co-founder Max Levchin says United States runs the risk of losing if it doesn't digitize the dollar

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In the ever-changing world of cryptocurrency, there's not just a battle for which one will become the main one. Paypal co-founder and Affirm CEO Max Levchin told FOX Business' Maria Bartiromo there's one aspect not enough people are talking about.

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"The fundamental competition isn't between Libra and not even Bitcoin or a Ethereum or any one of those other guys," Levchin said on "Maria Bartiromo's Wall Street." "The real question is: Who will be -- which state, nation-state -- will be the digital currency of the world."

"If the U.S. does not get its act together and fully digitize the dollar, we run the risk of letting China become the digital reserve currency of the world."

- Max Levchin, Paypal co-founder and Affirm CEO

But how does the U.S. digitize the dollar?

Levchin said, besides eliminating non-digital currency in circulation, "the fully digital world isn't about more digital, it's about less analog."

He said the goal is to be able to operate the entire day without touching physical currency.

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When it comes to which cryptocurrency will be the champion, Levchin said Libra might succeed because of Facebook's significant influence, but he said that's not where the "real action has been." He said while central banks will definitely move toward digital currencies, he's curious how the cryptocurrency battle will play out.

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"Will China get in front of the U.S. with digitization of RMB or will we get there first?" 

- Max Levchin, Paypal co-founder and Affirm CEO

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