This is opinion editor Matt Smith, operations officer for the United States Air Force. Associate Professor of Aerospace Studies at the University of Nebraska-Lincoln.
While the country’s most hostile opponents are actively pursuing ways to de-dollarize the world, they also openly declare that “an economy of imaginary wealth is inevitably being replaced by an economy of real values and fixed assets.” the world’s scarcest existence is not far off in the not-so-distant future.
Countries will not ban Bitcoin. Instead, they will eventually compete aggressively for it, and those with larger factions of 21 million will have greater strategic and economic advantage over their geopolitical rivals.
However, the National Security Strategy (NSS) is a periodic document designed to convey the executive branch’s vision and serves as a road map for the United States, helping Congress implement the directions set by the highest office in the land. The October 2022 NSS outlines how the White House will seize this crucial decade to “advance vital American interests, advance the United States against geopolitical rivals, solve shared challenges, and firmly build our world toward a brighter and more hopeful tomorrow. “
These powerful words not only hold hope and the promise of a better future for the American people as the United States continues to champion freedom and democracy on the world stage, but they also understand if there are any missteps in the nation’s strategic plan. Interests that could bring further darkness to a country desperately seeking light, or worse, cost the nation its global standing. It is imperative that the United States truly consider all available options to ensure the best outcomes that promote American values and protect the American way of life.
Digital Currency can no longer be ignored
The Trade and Economy section of the latest NSS states: “[the U.S.] He will explore the advantages of and lead the responsible development of digital assets, including the digital dollar, with high standards and protections for stability, privacy and security to benefit from a strong and inclusive US financial system and strengthen its global dominance.
Despite being labeled as “magic internet money” and “rat poison” over the past decade, Bitcoin’s rise has given it credibility, and since then it has gradually found its way into the committees and boardrooms of members with the highest positions of influence. It can no longer be ignored. The aforementioned NSS quote provides an important insight into the executive’s current view of the growing importance of the development of digital assets such as Bitcoin.
One of the reasons for the growing interest in digital assets is undoubtedly the US national debt, as the country currently faces a $31 trillion deficit. Senator Rand Paul recently admitted that “our greatest national security risk is our debt” after releasing a $1.7 trillion (or about 95 million bitcoins in today’s value) spending package. The national debt mountain is certainly a concern.
There are only two ways to cover a deficit of this magnitude: either through monetary reset or through inflation. Due to unsustainable levels of debt, there is a growing need for innovation to address this dilemma. The path to a digital dollar is almost inevitable, as the era of 0% money is quickly approaching its use-by date, forcing a transition to a new monetary system that will be available – a monumental change the world has not experienced since 2009. In 1971, instead of defaulting on its financial obligations, the US completely changed its economic policy, ending the Bretton Woods era and removing gold from the peg to the US dollar.
If history is any indication of what will happen at the end of the next fiscal cycle, the US will likely explore an alternative economic policy as outlined in the NSS, but this time introducing a central bank digital currency (CBDC) or Digital Dollar, ironically the default form. to not pay the current debt.
The US can accept Bitcoin
However, the US may not need to invent a domestic digital dollar, as Bitcoin meets the criteria detailed in the NSS. Bitcoin is the most difficult form of money and provides the highest standards of protection for individuals. It is the most stable digital asset as it continues to release a new block every 10 minutes, and is the most comprehensive monetary protocol as it allows its benefits not only to those with social security numbers and two forms of government-issued ID. its open source protocol provides protection and services to everyone, including the 1.4 billion unbanked people worldwide, while the Lightning Network promotes efficient operations, the most important dimension of the globalized economy.
As more individuals, companies, banks and countries are forced by the market to pay off loans in bitcoin rather than notes, the holders of the largest bitcoin stacks will naturally gain more influence. Its intrinsically deflationary nature and absolute scarcity properties ensure that 100% of the work and value created by humans is used and never reduced by monetary depreciation. Finally, Bitcoin’s formidable defense system discourages bad actors because the cost of an attack has become too high, forcing peaceful and mutually beneficial agreements.
In every sense, the Bitcoin protocol perfectly fits the core values and national security strategy of the United States. Contrary to what some senior officials claim, Bitcoin does not pose a national security risk. Instead, ignoring the Bitcoin network will significantly hinder the ability of the United States to pay off its own national debt. [its] geopolitical rivals’ and weakens the country’s instrument of economic power, which aims to use the country’s wealth to influence the behavior of others. Thus, further delaying Bitcoin adoption is a national security risk.
This is a guest post by Matt Smith. The views expressed are solely their own and do not necessarily reflect those of BTC Inc or Bitcoin Magazine, the University of Nebraska-Lincoln, the Department of Defense, or the United States Air Force.