Derek Pew

Fear and lack of knowledge of cryptocurrency at the highest levels of the US government pose a major threat to national security.
The emergence of the technological solution provided by the Bitcoin protocol in 2008 (and the myriad of blockchain-based protocols that arose thereafter) and related payment channel networks (PCNs) (global peer-to-peer wealth transfer networks) has opened a Pandora’s Box that forever changes global peer-to-peer wealth storage and transfer. Add to that the rapid advancement of artificial intelligence capable of nearly any solution creation in PCNs and the global monetary system is about to change dramatically.
Yet politicians on both sides of the aisle, as well as much of the national security establishment, do not understand how digital currencies work and are reluctant to take the proactive means to ensure the continued use of the US dollar as the de facto global currency in the context of these new technologies.
The current resistance to exploring the development of a US Central Bank Digital Currency including legislative efforts to prohibit the US Treasury from taking steps to explore its feasibility, is based on misinformation about how digital currencies function and fears about a loss of privacy rights or a government’s ability to control people’s ability to purchase goods and services. The attitude seems to be that the US government has the ability to single-handedly stop global technological development and freeze a pre-digital international monetary landscape in place in perpetuity.
Such efforts are short-sighted and could threaten the position of the US Dollar in the global financial ecosystem. Since the Second World War, a key instrument of US national power has been the global demand for a stable currency in which long-term trade and investment transactions can be denominated and wealth can be stored. The United States benefits from this global demand for its currency—with up to 80 percent of transactions denominated in the dollar—for it maintains the dollar’s stability.














