{"id":12191,"date":"2022-11-05T02:55:49","date_gmt":"2022-11-05T02:55:49","guid":{"rendered":"https:\/\/coingrafter.com\/index.php\/2022\/11\/05\/from-the-bpi-to-treasury-bitcoin-is-a-strategic-asset-for-national-security\/"},"modified":"2022-11-05T02:55:49","modified_gmt":"2022-11-05T02:55:49","slug":"from-the-bpi-to-treasury-bitcoin-is-a-strategic-asset-for-national-security","status":"publish","type":"post","link":"https:\/\/coingrafter.com\/index.php\/2022\/11\/05\/from-the-bpi-to-treasury-bitcoin-is-a-strategic-asset-for-national-security\/","title":{"rendered":"From The BPI To Treasury: Bitcoin Is A Strategic Asset for National Security"},"content":{"rendered":"

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The BPI took on the U.S. Department of Treasury\u2019s problem. Treasury requested public touch upon digital property\u2019 nationwide safety implications, and the Bitcoin Policy Institute answered with a bomb of a doc. It explains the general worth of bitcoin as a instrument for freedom. It compares bitcoin to basic US-funded initiatives like Radio Free Europe and the Tor community. It touches the heartstrings and exposes the case in a convincing approach.<\/span><\/p>\n

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Today, @USTreasury<\/a> requested public touch upon the nationwide safety implications of digital property. <\/p>\n

In response, @matthew_pines<\/a> and I submitted this report, detailing how #bitcoin<\/a> promotes American pursuits and values overseas. https:\/\/t.co\/AOyWDH3p4v<\/a><\/p>\n

\u2014 David Zell (@DavidZell_) November 3, 2022<\/a><\/p>\n<\/blockquote>\n

To persuade folks to learn it, <\/span>the BPI summarizes it<\/span><\/a> like this:<\/span><\/p>\n

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\u201cOpen digital assets that empower individuals can help advance the cause of freedom, stymie the objectives of authoritarian adversaries, and help advance a core national security interest. Peer-to-peer systems like Bitcoin represent the essence of autonomy, voluntary cooperation, and liberal values that our country was built on.\u201d<\/span><\/p>\n<\/blockquote>\n

Over at Twitter, one of many authors took a special method. David Zell wrote:\u00a0<\/span><\/p>\n

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\u201cToday, the US Department of the Treasury requested public comment on the national security implications of digital assets. In response, Matthew Pines and I submitted this report, detailing how bitcoin promotes American interests and values abroad.\u201d<\/span><\/p>\n<\/blockquote>\n

We now know what we\u2019re coping with. Let\u2019s analyze the BPI\u2019s case to see if they’ll persuade us.\u00a0<\/span><\/p>\n

The BPI Compares Bitcoin To Tor<\/span><\/h2>\n

The BPI units the stage by making the case for bitcoin as an entire:<\/span><\/p>\n

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\u201cBitcoin allows anyone in the world with an internet connection to store and send value in a manner that cannot be reversed, frozen, or seized. It is open and permissionless. It is distinct from other cryptocurrencies in that it is credibly neutral, widely-decentralized, uncontrolled by any leadership or founding team, and optimized for resisting censorship.\u201d<\/span><\/p>\n<\/blockquote>\n

The bitcoin\/ Tor comparability may sound bizarre at first, however the BPI brings it residence with these examples:<\/span><\/p>\n

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\u201cJust as Tor enabled tens of millions of people to see and access the freedom of open societies, Bitcoin enables tens of millions to escape the capital controls of authoritarian states and connect to the western financial system. Just as Tor digitally enshrines and exports the right to communicate freely across the globe, Bitcoin digitally enshrines and exports free trade and the right to transact.\u201d<\/span><\/p>\n<\/blockquote>\n

\"BTCUSD<\/p>\n

BTC worth chart for 11\/04\/2022 on Gemini | Source: BTC\/USD on TradingView.com<\/a><\/pre>\n
The BPI Acknowledges The Risks<\/span><\/h2>\n
In the dangers part, the BPI appears to throw some altcoin tasks below the bus. They acknowledge that \u201ccriminal groups (some state-sponsored) have dramatically increased the scale, sophistication, and severity of ransomware operations.\u201d Then, the BPI says that criminals are more and more utilizing Monero increasingly.\u00a0<\/span><\/p>\n
The BPI additionally admits that \u201crevenue from hacking and theft are on the rise,\u201d however they are saying its \u201cprincipally driven by the dramatic increase in funds stolen from decentralized finance (\u201cDeFi\u201d) protocols.\u201d This is true, however did the BPI have to put in writing the next? \u201cThis portion of the crypto-ecosystem inherits the \u201cmove fast and break things\u201d ethos of silicon valley and their open supply code is a ripe goal for hackers to take advantage of and reap very massive bounties.\u201d\u00a0<\/span><\/p>\n
Last however not least, they tackle the elephant within the room, \u201cThe Lazarus Group (a hacking group controlled by the North Korean intelligence service) is the dominant exploiter of DeFi protocols.\u201d But then, the BPI blames \u201ctheir use of the Ethereum-based mixer Tornado Cash to launder their stolen assets.\u201d They don\u2019t have a good time the OFAC\u2019s determination to sanction the sensible contract, although. The BPI wrote that the act \u201cprecipitated widespread consternation in the crypto-community and will likely be challenged in U.S. court.\u201d<\/span><\/p>\n
To shut the danger part, the BPI brings up sanctions and Russia:<\/span><\/p>\n
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\u201cIt has been a common refrain that Bitcoin is a useful tool for rogue nations and entities to evade U.S. sanctions. This concern was raised in the immediate aftermath of Russia\u2019s invasion of Ukraine, but thus far, no significant use of Bitcoin to evade sanctions has materialized.\u201d<\/span><\/p>\n<\/blockquote>\n
Actionable Items AKA Strategic Principles<\/span><\/h2>\n
The BPI left Treasury with some easy actionable gadgets that they referred to as \u201cstrategic principles,\u201d to \u201cmitigate risk, while maximizing the promise of these emerging technologies.\u201d Those have been:\u00a0<\/span><\/p>\n