The rise of cryptocurrency has far-reaching consequences and this goes beyond just the everyday consumers that make use of it but extends towards nations of the world. This is because cryptocurrency is free of some of the limitations of fiat currency and as such, can be used differently by world governments. As a result of this, many countries such as China, the Bahamas, and Venezuela have seen benefits of creating their own national digital token and as the world moves into a new era where cryptocurrency can be widely used, there is the need to prepare ahead of time.
On November 21, 2019, the Harvard Kennedy school performed a live simulation of a White House Security Council Meeting and this featured former senior administration personnel as well as thought leaders and cryptocurrency came into play.
The exercise in question was tagged “Digital Currency Wars” and was in an imaginary scenario in which North Korea launched a missile test that was made possible by China’s upcoming digital token. The simulation takes place two years into the future and it is assumed that China’s digital token launched 20 months before that time. Not only was the token a general success, but its ease of use and methodology has been applied across South East Asia as a result.
Following this, North Korea is able to get around US sanctions by making use of the digital token and then launch its initial test which is much more advanced than the United States had anticipated. Several options are, therefore, being put forward to the President of the United States. In the simulated universe, the United States would be economically reliant on China as a result.
“We will not successfully starve North Korea economically without the cooperation of China, and certainly not if it is their objective to see us fail,” said the simulated Treasury Secretary.
During the simulation, it is pointed out that there is a 30-year history of the United States not being successful in getting China to use leverage. This is interrupted by another warning which states that the global SWIFT system has been hacked and $3 billion has been stolen from banks across Germany, Saudi Arabia on the united Arab emirates.
Though some attendees of the simulation suggested trying to use some sort of exiting strategy for the swift system, others suggested using diplomatic pressure to get China to cooperate, developing the United States’ own digital token to resuscitate their power and even the less desirable option of military action.