The Director of National Intelligence wants them to inform the SEC leader of the dangers of the US falling behind on cryptology.
The US national security apparatus is warning other agencies about the arrival of China’s digital currency.
On Wednesday, the Washington Examiner reported on a letter that Director of National Intelligence John Ratcliffe sent to Securities and Exchange Commission Chairman Jay Clayton earlier this month.
According to the report, Ratcliffe offered to have staff brief Clayton on the security issues arising from China’s dominance of cryptomania, as well as the country’s progress in digitising the Yuan. Ratcliffe’s letter also apparently motivated Clayton to ensure that US cryptomint companies remain competitive.
Cointelegraph has reported extensively on the race for a digital currency from the central bank, or CBDC. Among the major economies, China seems to be the closest to the launch.
Since Bretton Woods in 1944, the United States has enjoyed a privileged status as an issuer of the world’s reserve currency, the US dollar. To this day, almost all international trade is conducted in dollars, although this is changing for countries such as Russia and China, which are subject to extensive US sanctions.
The special status of the dollar allows the Federal Reserve extra flexibility to print more dollars without falling into hyperinflation, as there is a great demand beyond the shores of the United States. It is also this special status that allows US sanctions to be such useful instruments of international influence.
A successful digital yuan could challenge the status of the dollar in international trade. However, the other side of the Bitcoin Circuit is that many see the digital yuan as a surveillance tool for the Chinese Communist Party. While this could reduce demand, this improved access to information may be another factor that concerns Ratcliffe.