The United States’ national security policy could be at risk if it loses its dominance in financial innovation and payments, warns former Department of State official Anja Manuel. In a Twitter Spaces discussion with Coinbase CEO Brian Armstrong and listeners, Manuel pointed out that the US’s leadership in payments allowed the government to enforce sanctions on “bad actors” like Iran or North Korea. However, China seems to be catching up in mobile payments’ sophistication and scale, which could threaten the US’s national security controls if it loses its financial innovation edge.

In other news, Dogecoin (DOGE) took a hit on April 20, known as “Dogeday,” due to the failed test launch of SpaceX’s Starship rocket and a downturn in the broader crypto market. The Dogecoin mascot was featured on the rocket, which disintegrated four minutes after launch. Despite the failure, employees, including Elon Musk, cheered on the launch and expressed optimism for another test in the near future.

The failure of the SpaceX launch is significant, considering the hype around Dogecoin and the recent push to make it a legitimate investment option. The cryptocurrency has gained immense popularity on social media and attracted mainstream investors, with its value surging more than 10,000% in 2021 alone. However, events like the failed rocket launch and broader market downturns demonstrate the volatility and risks associated with cryptocurrencies.

On the other hand, the US’s position in financial innovation and payments has been a significant factor in its national security strategy. The ability to enforce sanctions and monitor financial transactions has given the US a unique advantage in international relations. However, Manuel’s warning suggests that this advantage could be threatened if China continues to advance in the fintech industry.

It’s worth noting that China has been making significant strides in mobile payments and digital currencies, with the rollout of its digital yuan and the widespread adoption of payment platforms like Alipay and WeChat Pay. These developments have raised concerns about China’s ability to challenge the US’s position in the global financial system.

In conclusion, the US’s dominance in financial innovation and payments is crucial to its national security strategy, particularly in enforcing sanctions and monitoring financial transactions. However, as China continues to catch up in mobile payments’ sophistication and scale, the US’s position could be at risk. As for Dogecoin, the failed rocket launch and broader market downturns serve as reminders of the risks associated with investing in cryptocurrencies.