Blockchain Cold War: Scare Tactics Or Real Threat?

Could there be a Blockchain Cold War coming? One former Bush security advisor warns of the possibility.

Juan Zarate, a former deputy assistant to U.S. President George W. Bush and a former deputy national security advisor for combating terrorism, is credited with helping create sanctions that cut off terrorist funding in the post 9/11 era.

However, now Zarate fears that blockchain technology could undo all the work he did to put pressure on enemies of the state.

Zarate, a Coinbase advisor since 2014, told Coindesk, “There are nefarious actors out there, including state actors like North Korea and Iran that are looking to the use of digital currencies and related technologies, at a minimum as a way of circumventing the current global order which limits their access to capital. But ?these capabilities and technologies could also be a way for them to try to undermine global financial commercial systems at some point.”

Despite his concerns, Zarate does support blockchain technology, but he just wants to ensure it isn’t used by those with evil intentions to carry out terrible crimes. He also believes that governments must be transparent in blockchain usage because of the ease with which governments are able to use cryptocurrency to avoid sanctions.

In fact, reports point to a Bitcoin war chest that North Korea is amassing to avoid sanctions.

While Zarate feels optimistic about crypto, he said, “we need greater transparency and not less, if we hope for these technologies to take hold.”

Overall, while blockchain technology is exciting, without proper technology it could have unintended consequences on the US and World economies should it be used inappropriately in the future.