Bitcoin is a National Security Opportunity for the U.S. and Not a Threat

The White House should embrace a bitcoin standard because it recognizes the importance of digital currency in its National Security Strategy. The ban on Bitcoin will not be implemented by countries. They will eventually compete for it, and those with larger fractions than 21 million will have greater economic and strategic primacy than their geopolitical rivals. The National Security Strategy (NSS), a periodic document, is designed to communicate the vision and serve as the roadmap for the U.S. that assists Congress in carrying out the directives of the highest office in the country. The White House will use the October 2022 NSS to outline how it will “take this decisive decade to advance America’s vital interests, position America to outmaneuver Geopolitical rivals, address shared challenges, and set our planet on a path towards a brighter, more hopeful future.” These words are powerful and inspire hope and promise for a better future for Americans. The U.S. will continue to be a champion of freedom and democracy on international stage. However, they also acknowledge that any missteps in the country’s strategic interests could bring more darkness to a country that is desperately seeking light, or worse, threaten its global power. It is crucial that the U.S. weighs all options to ensure the best possible outcomes. The “Trade and Economics” section of the latest NSS states that “[the U.S.] will examine the merits of digital assets and responsibly lead their development, including a digital currency, with high standards of stability, privacy and security to benefit a strong, inclusive U.S. financial sector and strengthen its global primacy. “Despite being called “magic internet money” or “rat poison” over a decade, Bitcoin’s rise has secured its credibility. Since then, it has made its way into committees, boards, and rooms that include members with the highest levels of influence. It cannot be ignored. The NSS excerpt provides valuable insight into the executive branch’s current view on the growing importance of digital assets such as Bitcoin. The U.S. currently has a $31 trillion deficit and shows no signs of slowing down. Rand Paul recently stated that the “greatest national security risk” is our debt after the release of a $1.7 trillion spending package (or approximately 95 million bitcoins, in today’s currency). The national debt mountain is a concern. There are only two ways to pay a deficit that large: inflation or default. This is why there is a growing need to innovate to solve the problem. As the era of zero money approaches its expiration date, the path to a digital currency is almost certain. This forces the transition to a new monetary system. It will be a major shift unlike anything the world has seen since 1971’s Nixon Shock. The U.S. changed its economic policy completely in 1971. It ended the Bretton Woods era, and removed gold from the U.S. dollars. If history is any indication of what will happen at the end of the next financial cycles, the U.S. may explore an alternative economic strategy as alluded in the NSS. However, this time the central bank digital currency (CBDC) will be introduced to avoid defaulting on its current loans which, ironically is a form a default. Bitcoin is the most secure form of money and offers the best protection. It is the most stable digital currency as it releases a new block every ten minutes. It also provides the highest level of protection to individuals as it is open-source. Its inherent deflationary nature, absolute scarcity features and other features ensure that people can enjoy 100% of the work and value they have created and are not diminished by monetary debasement. The enormous defense system that Bitcoin provides discourages bad actors from attacking. It also forces peaceful and mutually-beneficial agreements. In every sense, Bitcoin protocol is in complete alignment with the core values and national security strategy of the United States. Contrary to some senior officials’ claims, Bitcoin is not a national security threat. Instead, the U.S. should not ignore the Bitcoin network as it would significantly hinder its ability to pay its national credit, “outmaneuver [its] Geopolitical rivals” and weaken the country’s economic instrument of strength, which aims at leveraging the country’s wealth to influence other countries’ behavior. This guest post is by Matt Smith. Opinions expressed by Matt Smith are their own and do NOT necessarily reflect those of BTC Inc, Bitcoin Magazine, the University of Nebraska Lincoln, the Department of Defense, or the United States Air Force.

 

Add a Comment

Your email address will not be published. Required fields are marked *