All this is true and I've been writing about this as well, only from the perspective of the role of China in crypto-currencies.

China has effectively a monopoly on mining and block validation of all PoW crypto-currencies. This is from the ASIC design and manufacture rigs, through the design and running of large-scale mining operations.

The increasing "adoption" of crypto and its entering into the corporate treasuries (eg., Twitter, Tesla, Microstrategy, etc.) and its spread into investments accounts and indexes and the whole stack of financial services exposes the west (most of all the USA) to a giant turn-off switch that China can easily flip. This would result in a serious destabilization of these institutions and drive more reliance on the eRMB and its systems.

Almost all people I describe this to are hearing it for the first time and dismissing it. Of course, Peter Thiel's remarks indicate an awareness of the problem. But let's not forget, this is the guy who wants to build his own Libertarian paradise somewhere where he can just be "freely rich".