Crypto – A National Security Asset

Avoiding new technologies and business methods has never produced positive results; Crypto Is No Different With the recent spate of crypto reporting and analysis between law, regulation and market sentiment, it would be understandable if a particular thread slipped under the radar; the connection between crypto assets and national security. At this point it has already been stated several times that the continued integration and use of crypto assets, be it bitcoins or stablecoins, represents a systemic threat that applies to the financial markets , the status of the US dollar as a global reserve currency, and the US’s strategic success abroad.

This couldn’t be further from the truth: Blockchain and crypto have proven to be perhaps the most disruptive technology since the development of the Internet, with applications and use cases still being discovered on a daily basis. some distortions and changes in the status quo, but this does not represent a national security risk, rather the continuous development and diffusion of crypto assets holds the potential for new and innovative applications in practically every economic sector.

Let’s take a look at how and why crypto assets should be considered a national strategic good and why their future development should be encouraged and nurtured.

Upgrading the dollar.  One of the most prominent arguments made against cryptoassets is that they pose an existential threat to the status of the US dollar as the global reserve currency. There is no guarantee, it is true, that the dollar will also be the global reserve currency, but the assigning of blame on crypto is a short-sighted and an incomplete assessment of the situation. Instead of fearing the rise of crypto as a threat to the current position of the dollar, policymakers and regulators should embrace the benefits of crypto-based payments.

In other words, instead of going against anything that resembles crypto transactions without understanding the nuances and differentiations that exist, policy makers should try to incorporate the beneficial aspects of these instruments into existing structures. Blockchain and crypto payments have quantifiable benefits that are widely acknowledged, recognized, and should be leveraged as much as possible. The United States, and with it the dollar, faces tough competition in all areas of world trade, diplomacy and influence.

Why not make the dollar, the most powerful economic tool used by policymakers, the best and most up-to-date version of yourself?

Better Data– An additional strategic asset and advantage of blockchain-based transactions is the security and encryption that such a business transaction brings with it. Good quality data is the lifeblood of any organization, and every decision requires high quality, reliable and comparable information in order to make informed decisions. In this light and context, the arguments for supporting the adoption and implementation of blockchain and crypto applications should be easy to find.
Much has been written about how technology trends like artificial intelligence, automation, and robotics will fundamentally change the world in the future, but each of these applications requires high quality data that can be trusted. Given the frequency of hacks, breaches, and other data impairment issues that occur all too often, the importance of data tools that can securely protect and transfer data should not be underestimated. Blockchain and crypto that meet this need should be supported rather than treated as a regulatory headache.
A new paradigm: Blockchain and crypto-assets clearly have potential that is only just beginning to be tapped by the private sector in terms of use cases, applications and opportunities, just like other technological innovations before them. It is impossible to predict by market participants, but there are some general statements that are true.
First, trying to openly regulate or control an innovative technology is not only unsuccessful, but will simply send the innovation elsewhere. Second, blockchain and crypto assets do not exist in a vacuum, nor are they tied to any jurisdiction or area; it really is a global industry with a global impact. Finally, and to come back to a previous point, many of the technologies and applications that excite policymakers and private sector actors depend on data that is secure and easily portable; this is what blockchain and crypto offer.
Crypto assets and the underlying blockchain technology are certainly tools and applications that, as we speak, are reshaping the way people and institutions do business and interact with one another. However, it is important not to see these interruptions as a threat or risk, but as an opportunity that needs to be supported and nurtured. Crypto is certainly a national security issue, but it is an asset, not a threat.