Bloomberg reported on May 22 that recognizing Bitcoin as a form of foreign currency may have an impact on the decision of the US Department of Defense (DoD) to recruit new employees.
The Pentagon’s biggest concern is whether an investment in cryptocurrency indicates criminal intent or the tendency to increase dangerous personal behavior. This may adversely affect the personal image of a job seeker during security checks that the Defense Department conducts.
At present, the U.S. Department of Defense has not yet formulated guidance on the ownership of cryptocurrencies. According to reports, the Pentagon is waiting for the U.S. Department of the Treasury, the Securities and Exchange Commission (SEC) and other agencies to notify the legislative interpretation of cryptocurrency. U.S. national security agencies must track 4 million individuals through some form of security check.
As Bloomberg points out, closer scrutiny of job seekers with digital currency may hinder the Pentagon’s efforts to expand its cyberspace business. Greg Touhill, the first federal chief information security officer, said:
“If we want to say, if you have a bitcoin or another digital currency account, it could be a signal, or a dangerous signal that pops up for security clearance, guess what? Those people will not be sitting there waiting for The government works hard. In my opinion, this will greatly increase the backlog of orders.”
Some experts disagree with whether having encryption technology is a legitimate form of risk. Steve Aftergood of the American Scientists Association said that he doubted whether the government “clearly understands what makes a person actually a security risk.”
On the other hand, Nicholas Weaver, a researcher at the University of California International Computer Science Institute, said that the Pentagon’s careful review of encrypted investors is correct. Weaver repeats what he often hears. “The real purpose of Bitcoin is to buy drugs, etc. It’s questionable,” he added:
“As for those HODL-ers, they will go through the customs clearance process, because it is obvious that they are only small speculators or outright speculative speculators. In this case, do you really want that kind of government?”
Cointelegraph previously reported that the president of the Federal Reserve Bank of San Francisco, John Williams, said that the cryptocurrency “has not passed basic tests of currency.” He said that money should be “essentially valuable” and flexible to support different economic and financial conditions.
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