Posted 8 months ago | by Ben Armstrong
US Government Looks for Ways to Use Blockchain as China Backs off Digital Yuan
Many US government agencies are slowly showing their interest in blockchain (distributed ledger technology) thanks to the transparency and efficiency it provides.
This interest stems from a proof of concept conducted by the Office of Financial Innovation and Transformation (FIT) to track mobile devices. Later, the technology was implemented into other projects that manage software licenses and grant payment.
Its use was also pushed by the Food and Drug Administration (FDA) during the reemergence of the swine flu in order to track data.
The project was spearheaded by a team led by Dr. Henry Francis called Real-time Application for Portable Interactive Devices and is considered as one of the first full-scale integration of blockchain in the federal government.
Blockchain is Made for Tracking
The project director of FIT, Craig Fischer praised blockchain for providing not only for its efficiency and transparency but also its resilience without any points of failure.
Furthermore, the Department of Health and Human Services reportedly saves $30 million upon a contract by using blockchain, claiming the implementation reduces paperwork, provides efficient record keeping, and is cost-effective.
Currently, the FDA is now finding new ways to adopt blockchain to provide safety and transparency in the food and pharmaceutical industry.
Chinese Blockchain is Meant to Control
China blockchain integration is miles ahead of the US, with blockchain being used by countless government agencies. The Chinese government is almost the same thing as its major compnies, so using blockchain has resulted in positive moves, especially from the standpoint of the CCP.
With its latest innovation, the digital yuan, a central bank digital currency (CBDC) that may be gunning for the US dollar, China has moved itself into very dangerous territory.
The USA is already working to end China's ambition in the South China Sea, and with China escalating the situation by firing missiles into disputed territory, the USA may not be willing to tolerate any new ideas in the financial markets.
A Dangerous Path for China
While the USA has been willing to continue to allow Chinese banks to access Western financial infrastructure, a Chinese CBDC could end the current level of cooperation between China and the USA.
Any breakdown from here in the financial markets may lead to a wider geopolitical breakdown, which could be why China has dropped plans to roll its digital yuan anytime soon. Much like Japan was in lead up to WW2, China is pushing against the global political order – and may underestimate the consequences.
The Asian theater of WW2 was ended by dropping two nuclear bombs, and if China continues to threaten South East Asian interests – the next war could easily start with an atomic nightmare.
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