Global Crypto and Digital Currency Initiatives: U.S. Crypto, Digital Assets and National Security Policy
We continue with our survey of crypto and digital currency initiatives from around the globe, all of which are officially sanctioned to enhance national competitive advantage (in the event crypto overtakes the US dollar as the global reserve currency). It is the cumulative adoption rate of state-sanctioned crypto and digital currency legalization and regulation that will propel this innovative system for value exchange as a global currency standard. In previous posts, we provided an analysis of crypto and digital currency initiatives in Pakistan, Vietnam, Colombia, China, El Salvador, Panama, Ukraine, India, Argentina, and Russia. We now return to the U.S. to evaluate crypto and digital asset initiatives announced via executive order in March of this year.
The October 2022 OODA Network Member Meeting: OODAcon 2022, Exponential Disruption and the Future of Innovation at Speed and Scale
OODA hosts a monthly video call to help members optimize opportunities and reduce risk to discuss items of common interest to our membership. These highly collaborative sessions are always a great way for our members to meet and interact with each other while talking about topics like global risks, emerging technologies, cybersecurity, and current or future events impacting their organizations. We also use these sessions to help better focus our research and better understand member needs. To encourage openness of discussion, these sessions take place with Chatham House rules, where participants are free to use the information in the meeting but are asked not to directly quote or identify other participants (we also keep privacy in mind when preparing summaries of these sessions, like the one that follows).
The October call was held on Friday, October 21st. The call was dedicated to a discussion of OODAcon 2022 – and the insights and questions which should inform OODA Loop research and analysis in the months ahead.
On a plant-by-plant basis, additive and advanced manufacturing will create many high-skilled, high-wage jobs, but it is not a cure-all for the decades of job losses induced by decades of offshoring and outsourcing of the U.S. manufacturing and industrial base – with nowhere near the job creation that factories used to create in the U.S. This is only one of many research and analysis questions we have been exploring in 2022 – questions that were top of mind when, earlier this week, the first White House Leadership Summit of the Manufacturing USA Innovation Institute Network was held at the White House – along with a major policy speech earlier this month by the National Economic Council (NEC) Director Brian Deese on “Executing a Modern American Industrial Strategy” and the release by the Department of Commerce’s National Institute of Standards and Technology’s (NIST) Manufacturing USA Highlights Report 2022.
In a series of posts entitled Autonomous Everything, we are exploring automation in all its technological forms, including legacy working assumptions about the term itself. Autonomous Everything includes a broad autonomous future in areas such as Security Automation, Automation and the Workforce, Automation – or Augmentation – of the workforce, and Automation of AI/Machine Learning Training Models and Industry Standardization. Recently, we checked in with Junaid Islam, a well-known cybersecurity expert, to discuss security automation tools and the increased cyber risks enterprises face. We now expand on Part 1 and Part 2 to look at emerging AI-based Zero Trust cybersecurity for Smart Energy, Transportation, and Manufacturing systems.
Additive manufacturing is an exponential technology that will disrupt many industry verticals, including the future of the commercial space industry. Many of the component parts used to build additive manufacturing systems are examples of the convergence of a variety of technologies that are experiencing exponential growth curves which then contribute to the overall exponential speed and scale of the development of the larger systems and platforms of which they are a part.
In this, our latest post in the OODA Loop Speculative Design series, explore with us Relativity Space’s Stargate 4th Generation – “The largest active metal 3D printing system in the world – now operating at the company’s Wormhole Long Beach facility.” The company highlights the role of iterative design in all of its platforms – from the 3D printer technology platform to the innovative horizontal printing assemblage techniques and the design of its Wormhole factory.
CISA usually puts out an official Shields Up! advisory on long U.S. holiday weekends (based on the historical pattern of increased cyber activities directed at the U.S. during those weekends).
Although this weekend was not a holiday weekend, based on the recent cyber incidents and strategic threat vector activity itemized in this post, we put up the Shields Up! advisory starting on Friday to highlight recent CISA CSAs and Joint CSAs regarding ransomware, DNA resolution, recent targeting of the defense industrial base and other information threat vectors (Chinese hacking activity, etc.).
The Future of the Internet and Artificial Intelligence: Non-fungible Tokens (NFTs) and AI-Generated Art
The current non-fungible tokens (NFTs) environment serves as a prelude to digitally tracked assets of the future. It is an early exploration of how property rights and ownership will work in digital economies and the metaverse with a layer of irrational enthusiasm, speculative gambling, and desire to be part of a community applied on top of the current iteration. There is something real here that has yet to be fully realized and a lot of abstraction distraction today. Some technologists have included NFTs (and generative art which makes use of machine learning and blockchain-native randomness to produce striking, unpredictable art) in their vision for a third age of the internet—the securitized internet.
Yesterday (Sunday, October 16th), the Communist Party of China (CPC) convened the highly anticipated 20th National Congress of the Chinese Communist Party, where Xi will be appointed for a third term as President, or what some are calling a “21st Century Chinese Emperor” (not far behind the 21st-century Russian Tsarist construct emerging in Russia): “On Sunday, 2,296 of the Chinese Communist Party’s 96.7 million members will assemble for a week-long party congress in Beijing, the outcome of which is all but certain: a third consecutive five-year term for Xi Jinping as ruler of 1.4 billion Chinese. In ratifying an extension of Mr. Xi’s time as the political figure who controls more people, with fewer constraints, than any other in the world, the Chinese party would confirm that national aggrandizement and dictatorship, not global cooperation and human rights, are its lodestars.”
Nevertheless, the strategic question remains: Does Emperor Xi Jinping have no clothes?
Will Know Your Customer (KYC) Verification Regulations Stifle Crypto Innovation? And the Future of Money?
While massive, global cyber theft and data breaches may capture the headlines, there are many other issues surrounding the future of cryptocurrency. Fraud and cybersecurity activity is necessary for creative destruction in the cryptocurrency marketplace. OODA CEO Matt Devost captured the current climate in the crypto market noting that: “We needed to wash all the fluff out of the system. And every week we are seeing some sort of mass destruction of a major player in that space.”
Governmental regulation now looms large over the entire innovation ecosystem. Many governments – and the U.S. will follow the lead – will not allow the transfer of bitcoin or digital currencies unless the identity of the recipient wallet is known. This policy has come to be known as Know Your Customer (KVC) verification on anonymous crypto transactions and has the potential to break the anonymity-based model for much of the ecosystem.
OODA Network Member Junaid Islam on Global Cyber Risk, Weaponized IT Supply Chains, and The Enterprise
In a series of posts entitled Autonomous Everything, we are exploring automation in all its technological forms, including legacy working assumptions about the term itself. Autonomy is not just about the future of the automobile and personal mobility but includes a broad autonomous future in areas such as Security Automation, Automation and the Workforce, Automation – or Augmentation – of the Workforce, and Automation of AI/Machine Learning Training Models and Industry Standardization.
Recently, we checked in with OODA Network Member Junaid Islam, a well-known cybersecurity expert, about “Automated Continuous Threat Testing”. We continue this conversation to discuss the increased cyber risks Enterprises face due to the current geo-political environment and actions they should take to mitigate cybersecurity and operational risk.