Amid regulatory uncertainty and anti-crypto sentiment in the United States, Coinbase, a leading US-based cryptocurrency exchange, has linked crypto to national security.
The firm noted in the long run blog post America should adopt crypto to facilitate national security.
The May 30 article discussed the impact of the adoption of new technologies on security and world leadership.
Coinbase also highlights American history with wars and economic growth, and how innovation and technology helped propel it to the pinnacle of world leadership.
America acknowledged its position in innovation and technology
According to Coinbase, the United States seems to have lost that drive after World War II as it tried various technologies in an effort to remain a world power.
While the US was at the forefront of the technological revolution, it ceded its leadership position to Japan, Taiwan and other countries. Korea,
These countries became world leaders in chip manufacturing, an essential material in computers, defense, internet, gaming and blockchain technology.
Coinbase claimed that centralizing the production of such essential goods in one region poses a geopolitical risk.
Further in its post, the crypto exchange highlighted the risks of counterfeit electronic chips, which contain malware and harmful substances that can lead to data theft.
Coinbase also said that given the importance of electronic components in daily life and military technology, the inability to manufacture advanced chips could leave the US vulnerable to external attacks.
So, after a long period of indecision, the US took action in 2022. The CHIPS Act came through with the support of the White House and bipartisan Congress.
The move provides $52 billion for advanced semiconductor development and manufacturing in the US, including nearly $100 billion for research over five years.
While the early results of the move are promising, rebuilding the US as a global center for microchip manufacturing will take years.
Regulatory clarity will boost crypto and blockchain technology in the US
While advanced microchip development is a progress, Coinbase believes that blockchain and crypto are the next-must-have technologies for the United States and other countries.
It believes that crypto’s potential utility in data storage, finance, and supply chains, makes it a promising business opportunity and a target for cyberattacks.
However, in order to keep up with the most advanced crypto technology, the US needs to outpace other countries in building a sustainable crypto ecosystem.
Coinbase is confident that the US has the drive and know-how to build an advanced crypto ecosystem.
But, sadly, there is a lack of political leadership that maintains America’s dominance over other states.
Coinbase pointed out that the crypto ecosystem does not require subsidies or investments from the government.
All it needs is a basic legal infrastructure/framework that provides regulatory clarity for crypto investors.
Without this, Coinbase said it would be difficult for the crypto ecosystem to survive in the US when other jurisdictions have favorable regulatory regimes.