In an opinion editorial published on Bitcoin Magazine, Matt Smith, an operations officer for the United States Air Force and an assistant professor of aerospace studies at the University of Nebraska-Lincoln, discusses the potential for Bitcoin to serve as a “national security opportunity” for the United States.
Smith argues that as countries around the world look for ways to de-dollarize the global economy and shift towards hard assets, the competition for Bitcoin, the hardest and scarcest asset in the world, will only increase.
He notes that countries will not ban Bitcoin, but rather compete aggressively for it, with those holding larger fractions of the 21 million total Bitcoins having greater strategic and economic primacy.
Smith points to the National Security Strategy (NSS) as evidence of the growing importance of digital assets like Bitcoin in the eyes of the executive branch. The NSS states that the United States will “explore the merits and responsibly lead development of digital assets, including a digital dollar, with high standards and protections for stability, privacy, and security to benefit a strong and inclusive U.S. financial system and reinforce its global primacy.”
Smith suggests that the United States’ large national debt, currently at $31 trillion, is a major driving force behind the push towards a digital dollar. With the possibility of default or inflation as the only options for paying off such a large deficit, there is a need for innovation to find a solution. Smith believes that the transition to a new monetary system, potentially involving a digital dollar, is rapidly approaching.
In addition to addressing the national debt, Smith believes that Bitcoin and other digital assets have the potential to enhance national security in several other ways. For example, they could provide a secure and efficient means of conducting international transactions, as well as a hedge against inflation.
Overall, Smith makes a compelling case for the United States to consider Bitcoin and other digital assets as a “national security opportunity.” While there are certainly challenges and risks to consider, the potential benefits for the country’s financial stability and global influence make it worth exploring.
