The United States national security apparatus is warning other agencies about China'southward upcoming digital currency.

On Wednesday, news outlet the Washington Examiner reported on a letter that National Intelligence Managing director John Ratcliffe had sent Securities and Exchange Commission Chairman Jay Clayton earlier in the month.

According to the report, Ratcliffe offered to take staff brief Clayton on the security problems that derive from China'southward dominance in crypto mining as well as the country'due south progress in digitizing the yuan. Ratcliffe'due south letter likewise apparently pushed Clayton to ensure that U.South. crypto firms remain competitive.

Cointelegraph has reported extensively on the race for a central bank digital currency, or CBDC. Among major economies, China seems to be closest to launch.

Since Bretton Forest in 1944, the U.South. has enjoyed a privileged status as the issuer of the world's reserve currency, the U.Southward. dollar. To this twenty-four hours, almost all international trade is settled in dollars, though that is irresolute for countries like Russian federation and China, which are subject to extensive U.Due south. sanctions.

The dollar's special condition affords the Federal Reserve extra flexibility in printing more than dollars without running into hyperinflation, as there is huge demand beyond U.S. shores. It is also this special condition that allows U.S. sanctions to exist such useful instruments of international influence.

A successful digital yuan could challenge the condition of the dollar in international trade. The flip side, however, is that many encounter a digital yuan every bit a tool of surveillance for the Chinese Communist Political party. While that might reduce demand, the upgraded access to information may exist another cistron that Ratcliffe is worried about.