Source: Zack Kelman
Five years ago, during our last global cryptocurrency policy review, insiders from the International Monetary Fund revealed a stringent regulatory framework, and for the first time, the U.S. president publicly (though skeptically) discussed cryptocurrency. Outsiders began intermittently banning Bitcoin (BTC), while exchanges moved to offshore experimental countries like Malta, as the deep intertwining of cryptocurrency with global politics became irreversible.
Since then, pure politics has further deepened the relevance of cryptocurrency in global politics. This year, the U.S. revoked its four-year anti-cryptocurrency policy and welcomed a president with cryptocurrency as a campaign theme through significant bipartisan stablecoin legislation.
For decades, the United States has maintained the dominance of the dollar and the banking system through strict anti-cryptocurrency regulations. However, with the proliferation of cryptocurrency in the U.S. and the rise of dollar-backed stablecoins, this policy has shifted. During the Trump era, retail investors and venture capitalists drove the popularity of cryptocurrency, and despite regulatory pressures, the cryptocurrency market fundamentally did not disappear. At the same time, external countries like China and Russia are also strengthening their interest in cryptocurrency.
The rise of external countries
China, Russia, and some developing countries are becoming increasingly powerful, but they still rely on a financial system controlled by the West. On one hand, they worry that the rapid development of cryptocurrency undermines control over currency flows; on the other hand, they see its potential to disrupt the existing global financial order.
At the same time, countries like El Salvador are actively adopting cryptocurrency, charting a unique path of development. In 2021, El Salvador became the first country to make Bitcoin legal tender and continues to expand its cryptocurrency reserves. Other countries, such as Argentina, are also gradually joining this trend.
The global cryptocurrency sector is undergoing a new transformation. Countries that can navigate the turbulent seas flexibly, using cryptocurrency not only as a financial hedging tool but also as a strategic asset, will gain an advantage in an ever-changing world.
Source: Zack Kelman.
This article is for general informational purposes only and is not intended to provide legal or investment advice. The views expressed in this article are solely those of the author and do not necessarily reflect or represent the views of Cointelegraph.
