DC/EP makes the US panic? Former government officials organize digital currency war exercises to discuss countermeasures

On Tuesday, a number of experts and scholars from Harvard University and MIT and senior US government officials participated in a crisis simulation of digital currency "Digital Currency War: A National Security Crisis Simulation." The event was hosted by the Bellver Science and International Affairs Research Center of Harvard University's Kennedy School. A number of experts simulated the National Security Agency and other department officials to develop a plan for the president to respond to the national security crisis within an hour.


The simulated crisis occurred on November 19, 2021. In the hypothetical scenario, North Korea used China's central bank digital currency (DC/EP) to evade economic sanctions imposed by the United States and successfully launched a missile to the Philippine waters near Guam, Japan. Since the economic exchanges between North Korea and China are carried out on China's own infrastructure, the United States cannot obtain information on North Korea's economic activities. That is to say, in this situation, the digital currency issued by the People's Bank of China has greatly undermined the hegemonic position of the US dollar in the global economic system.

Eric Rosenbach , co-director of the Bellver Center and former head of the Pentagon Network, simulated the National Security Adviser (NSA) and introduced the situation at the "National Security Council Emergency Meeting" and asked participants to target the North Korean missile test and the Chinese central bank's digital currency pair. The impact of US national security is developed to respond to the report.

In the next hour, the US National Security Council discussed numerous strategies to address the crisis.

"State Secretary" Nicholas Burns (founder of the Bellev Center's diplomatic future project, former US ambassador to foreign affairs and deputy secretary of state for political affairs) said: "We are at a critical juncture." He pointed out that the United States faces a double crisis: North Korea's nuclear ambitions and China Growing economic strength and competitiveness.

"Minister of Finance" Lawrence Summers (Professor and Honorary President of Harvard; former US Treasury Secretary) said that the ability of the United States to sanction North Korea depends almost entirely on its degree of cooperation with China, which controls the digital renminbi that North Korea uses to hide its economic activities. .

“National Intelligence Director” Jennifer Fowler (Assistant Deputy Director of Terrorist Financing and Financial Crimes, US Treasury) warned that Chinese commercial banks are in the “middle” of the digital renminbi issue. She suggested that because they wish to continue doing business in the United States, the United States should consider putting some possible pressure on them to encourage cooperation.

"President's economic policy aides" Gary Gensler (Professor of Global Economics and Management Practice at the Massachusetts Institute of Technology, former chairman of the US Commodity Futures Trading Commission) believes that China's transfer of funds from the long-term use of the SWIFT system is a serious challenge. “Financial Minister” Summers agreed and pointed out that Washington has relied on the SWIFT system as an important tool to influence its national security threats. He said that with the rise of China's digital currency, "we are in danger of losing this influence."

"American Ambassador to China" Richard Verma (Asian Group Vice-President and Partner; former US ambassador to foreign affairs and Assistant Secretary of State for Legislative Affairs) hopes that the group will consider cooperating with China and act cautiously to prevent escalation of conflict with China.

When the group discussed strengthening the SWIFT fund transfer system, a breaking news report from the “BCN” stated that the SWIFT network was hacked and caused $3 billion in stolen funds. Intelligence agencies speculated that North Korea was behind the attack.

Neha Narula, director of the newly established digital currency in the United States (director of the Digital Money Program at the Massachusetts Institute of Technology Media Lab, former Google senior software engineer), said that the US electronic trading system is not growing fast enough to remain safe in an increasingly digital world. She said: "The old system is no longer applicable." She believes that the United States should develop its own digital currency .

"Financial Minister" Summers argues that if the United States has a digital currency, "we can't interfere with the ability of others to use its currency," it may increase the conflict and put us on the path of a "completely broken world." Instead, the US should strengthen the SWIFT system – he thinks this can be done in six months.

Finally, “National Security Adviser” Rosenbach said in a review of the proposal submitted by the panel to the President that the National Security Council (NSC) recommended that the US President contact the Chinese national leaders to work together to prevent North Korea from advancing its nuclear weapons development; strengthen the SWIFT system ; American digital currency .

The People's Bank of China's digital currency DC/EP is on the horizon, and the US government has fallen behind in the exploration of digital currency. The former US government officials organized a digital currency war exercise, and it is clear that the digital renminbi has shaken the dominance of the dollar. The simulation exercise finally gave two choices: strengthening the SWIFT system and exploring the US digital currency. So, in reality, how will the US government respond? It deserves our attention.