An Open Letter to our Treasury Secretary & U.S. Legislative Leaders Regarding the Pending Presidential Executive Order on Cryptocurrency

Dear Madam Secretary of the Treasury and U.S. Legislative Leaders:

Thank you in advance for all you do to represent and serve our great country.

Treasury Secretary Yellen issued a brief public statement last night indicating some detail behind the Executive Order President Biden will be releasing regarding Cryptocurrency. This executive order will apparently set in motion a 180-day deadline for a series of reports on “the future of money” and the role that cryptocurrencies will play in the evolving landscape. It appears it will be fairly supportive of the Crypto industry and will promote interagency coordination, which I applaud. At first glance, the statement that was published then quickly withdrawn, while positive, seems to be short on action and specifics. The Financial Crimes Enforcement Network (FinCEN) recently warned financial institutions around the globe to “watch out for potential attempts by Russian entities to evade sanctions” via cryptocurrency.

I think it is important that we lead the world on this topic and not follow.

In my book World War Bitcoin, a short story released on Thanksgiving Day, 2021, I play out a global scenario of economic war, where Bitcoin plays a central role. Please note, I do not see Bitcoin as nefarious. Quite the opposite. I see it as a potential tool of liberation and economic freedom for many around the world. But I also understand how it could be an escape hatch and a “hail Mary” pass for dictators and isolated regimes.

The subtitle of the book is “A Scenario of Global Economic War…”; I have stated quite often my “fiction” short story is one scenario in an endless sea of scenarios, but unfortunately, we are seeing a version of it playing out real time in nightmarish fashion on the world stage.

With full disclosure, I am a small investor in cryptocurrency.

I think it is high time for a cogent, reasoned, intentional and coherent strategy to be implemented in this arena. An “ostrich head down in the sand” approach will not work. I have serious concerns we are way behind.

Recently, we have heard and read about some in our country and around the world who are fretting Vladimir Putin and his comrades will use the cryptocurrency space (namely Bitcoin) as an escape hatch out of the historic sanctions now being imposed upon him by the United States and our global partners.

My suggestion: Don’t just regulate it. Don’t fret about it…Acquire it. Acquire all that can be purchased, and acquire it now…

All who have joined together around the world to sanction this dictator should be at the exit end of every proverbial Bitcoin funnel absorbing every coin as it is newly minted. In addition, I feel the U.S. and its global partners should be an active participant in the secondary (retail) market.

At the very least, this will accomplish three things;

1.     The U.S. takes a lead role in the World Reserve Currency dialogue: This begins to establish a new co-world reserve currency to the U.S. dollar; it is very early, but the trajectory and path already are set in motion, and many experts believe we are trending in that direction. The U.S. and our allies can help guide and direct the path of this “currency” rather than lag behind, forced to react.

2.      Humanitarian Component: Some of the newly acquired Bitcoin can be used at some point, hopefully sooner than later, to help the people of Ukraine recover, get back on their feet and rebuild. At some point, it may even be used to help some of the innocent Russian citizens get back on their feet as well.

3.     Makes current and future sanctions more airtight: It further closes off the tunnel to an "escaping rat". It makes the global sanctions more airtight, sealing off a critical escape hatch to any dictator and his cronies.

Let us address it but leave for later the concern about how any tyrant is going to attempt to acquire it, launder it, hide it or shuffle the free world’s financial (or worse) deck with it.

We should corner the market now and ensure it is so crowded any tyrant cannot do so. This is going on offense, not remaining on defense. This is pressing the offensive. Let’s focus on what we can control now. Maybe you are already doing so quietly and if so, I applaud you again.

To garner courage, look to a not-so-small sampling of clear examples: corporations like Tesla and MicroStrategy among others who have taken risk and have already deployed billions of dollars from their own balance sheets to fund bitcoin purchases with it…

If we look at our U.S. balance sheet, and our debt position, I would argue this may be a more constructive use and deployment of capital than past deployment and I shall leave it at that. I say this with acknowledgement of the unprecedented times we have been slogging through these past few years.

I would venture to say if this “poker hand” is played right, the purchased cryptocurrency (most likely Bitcoin) as it appreciates could help begin reducing some of our historic deficit at some point, another side benefit of a strategy well deployed.

As is widely known, there is a finite amount of Bitcoin to be minted (21 million). 19 million have already been mined to date with only about 2 million left to go. The last to be produced is projected to be around 2040, so time is not on our side.

To conclude, I quote Sun Tzu, in his brilliant book, The Art of War: ‘Every battle is won, before it’s ever fought…’

Godspeed to all of you and thank you for your leadership and service to our country as we join together as a world community to fight this evil tyrant.

May God bless the people of Ukraine, our country, our military and our allies around the world.

Pete Frandano

Pete Frandano is the Author of World War Bitcoin – A Scenario of Global Economic War

released Thanksgiving Day, 2021