Set up in 2007, the CNAS practices in national security incidents and claims to be a bipartisan group that promotes policy resolutions for the American political mainstream.
A security expert and former CIA official stated that the Chinese Blockchain Service Network (BSN), is now very active in all major cities in China. It is continuing to add interoperability choices which could pose a significant threat to the United State’s supremacy in the digital realm. Thus, raising questions over the project’s potential entanglements for the crypto sector. An appendage Senior Fellow at the Center for a New American Security (CNAS) in Washington, DC, Yaya J. Fanusie placed ahead of the theories.
In a most recent analysis piece for Lawfare, Fanusie declared that while the BSN is currently solicited as a “system of low-cost backend architecture on which software developers around the world can build blockchain applications, including digital assets such as cryptocurrencies,” it is at the same time being viewed as an instrument that will function as the central cyber strategy concern of the Chinese Communist Party (CCP).
Fanusie said that American financial specialists “have benefited from the ubiquity of U.S. computer infrastructure in global business,” but believes that the BSN is “trying to challenge that norm.“
He published that,
“The CCP leadership believes that blockchain technology offers a foundational infrastructure for future technological innovation and that China should set the global standards in that arena. To begin doing so, China is inviting blockchain developers to build decentralized software applications on the BSN’s Chinese-run servers, even though some of the servers are located outside China.”
An entity oversees the network through the National Development and Reform Commission, one of the government authorities in charge for the Middle Kingdom’s macroeconomic preparation.
While the Ex-CIA officer mentioned that the U.S. might not sense the impact of the BSN’s prosperity in full. Its presence is a revelation of a new technique from China’s capital, Beijing in the battle amongst the two mighty countries.
“The BSN is not going to upend the U.S. domination of the internet anytime soon. But it indicates a new, and sensible, Chinese strategy. […] The good news is that while China’s blockchain internet is in its infancy, the U.S. has time to follow its development and respond accordingly.”
But there could be pressing dangers ahead for the USA and its allied, he warned.
Fanusie opined that the BSN “could undermine movements for human rights and political freedom,” and added that “Much of the blockchain developer community has strong libertarian leanings, promoting decentralized applications as means for censorship resistance and to fund protests against authoritarianism and state brutality.”
It is an irony, he added, that the BSN’s decentralization effort is “authoritarian-owned.”
The analyst warned that the “elusiveness of global blockchain adoption is exactly why China’s strategy deserves attention.”
He also detailed in his report that,
“The BSN is trying to significantly reduce the input costs of blockchain development, which would increase cost-savings and help keep blockchain projects alive as they seek users and profitability.”
Fanusie believes that China’s “outsized role” in bitcoin (BTC) mining may have taught its leaders a thing or two. He stated that,
“Chinese computer processing companies dominate the bitcoin mining industry largely because they operate in Chinese provinces where hydroelectricity is cheap, allowing them to sustain wider profit margins even when bitcoin’s volatile price drops.”
Fanusie summarized that U.S. decision-makers should “watch out for the BSN’s potential to hinder future investigations and enforcement actions relating to digital currencies.”