There is competition for currency superiority. Dollar is the currency of choice in the world … dollar is the means by which we have an opportunity to influence the economic system in the world. How will this currency affect the dollar? “- Al Green of Rep. Texas.
The comment made by the House of Representatives, which he had made at a Congress hearing on Facebook Meizan project last week, reflects what is not recognized by many coded currency companies: for the development of digital currency technology in the United States There are major national security implications.
In fact, the geopolitical story about blockchan technology is likely to be more important than purely technical and financial benefits which most coded currency enthusiasts insist on.
Of course, the highest level of the U.S. government sees encryption as a national concern. Although President Trump recently censored encrypted currencies, the US Treasury Secretary recently gave a brief statement in the White House, expressing concern about misuse of poor digital assets. The Treasury Secretary does not issue minor press releases.
However, even the US government has something missing with encrypted currencies. It lacks the clear framework that how the threat of bad actors using digital currencies is linked to the geopolitical influence of the United States.
So, there is bad news and good news
The bad news is that there are concerted efforts to build the rights of Washington on sanctions, to build currencies coded by some national-state enemies in the United States and other block-based value transfer systems in the United States.
Recently a writer has studied these efforts of Russia, Iran, Venezuela and China. The basic building blocks of new digital financial infrastructure have been constructed to help “wicked states” outside the US-led financial system.
The good news is that the creation of new payment channels is not equal to the dollar’s migration. Think of why the dollar is still high, even when fast anti-economic interests prefer the opposite.
China has long been aiming to eliminate the global economy from dependence on the dollar.
After the financial crisis in 2008, Beijing urged countries to establish an international reserve currency system based on a basket of major currencies, managed by the International Monetary Fund. This scheme received a little traction.
China’s goal of removing the dollar is being interrupted by unexpected balance with the United States. China, the world’s largest creditor, is the largest holder of US Treasury Bond, so if the dollar’s value drops sharply, China will be the biggest shock.
Thus, the People’s Bank of China is unlikely to take negligent steps as it attempts to reduce the economic impact of the United States.
Despite all the speeches in the encoded space about a bar-encoded currency that will ruin the global financial system, such emotions do not take into account the real world of geopolitics or economic history.
The dollar-led economic system has come after the end of World War II after years of interaction between the most powerful government players of the time: the emerging United States and the war-torn British Empire.
The war caused seismic change in global political influence that economists discussed important principles which could not conceive decades ago.
These changes gave great American influence, which enabled the design of a new system, eventually with British support, though hesitation.
Report of death of nation-state was very exaggerated. The national states determine how the global economic system works, regardless of the existing technology.
If anybody believes that big companies and technology are now beyond the power of the governments, then they should ask if the US regulators are on their way, the project will be launched on Facebook. The answer is not clearly.
If someone thinks that, because of its unauthorized and open source nature, Petevwin will remove the obstacles of hostile nation states, then just observe where the amount of Petchiken transaction grows.
Thus, state authorities can not apply (Venezuela, Zimbabwe) or, countries with strong financial system that give “permission” to the movement of property in the form of legal activity (United States and Japan).
And South Korea). To see how a nation’s nation can stop the development of an encrypted currency, just look at India or China.
The Betquin Protocol can always be present, but when a financially powerful state does not allow it, it will not flourish.
But this does not mean that the dollar or current American-led financial system will always be there. Here, again, history can be a guide and warning.