You may or may not have noticed the increasing tension between established global superpowers in recent months. It’s nothing new of course. But it’s fair to say we’re approaching unchartered territory on several fronts. There are an array of deeply entangled issues at hand that are stoking tensions between the East and West. However, in recent weeks it’s financial matters that are at the forefront of geopolitical issues.
Whether America likes it or not, the world is moving on from its dependency on the dollar. Historically, any country that made a solid attempt at doing so faced the full wrath of whichever administration was in place to oversee US foreign affairs. Unquestionably, cryptocurrencies have been a spanner in the works. Not just for America but for many countries. In several parts of the world, there has been a growing acceptance of cryptocurrencies as a viable financial instrument.
Countries such as Japan, Switzerland, and Singapore have implemented regulatory frameworks that facilitate the integration of cryptocurrencies into their existing financial systems. These regions recognise the potential benefits of cryptocurrencies, such as increased financial inclusivity, reduced transaction costs, and enhanced transparency. El Salvador has gone as far as recognising Bitcoin as legal tender.
The advent of cryptocurrencies sparked significant debates and discussions across the globe, with varying levels of acceptance and opposition. While some regions have embraced cryptocurrencies and their underlying technology, others, particularly Western powers, have taken a more cautious and critical approach. There’s a strong argument to be made that America, in this case, is intent on causing as much destruction as possible to the wider space, particularly within their own borders. Why might that be?
Concerns regarding the lack of regulation, price volatility, and potential for illicit activities are all used as sticks to beat down crypto enthusiasts. Never mind the recent uptick in collapses of regional banks across America nor the Dollar’s role in funding illegal and illicit activities around the globe.
The focus of Western powers on consumer protection and financial stability has led to the implementation of stricter regulations and increased regulatory oversight. Regulatory bodies have emphasised the need for Know Your Customer (KYC) and Anti-Money Laundering (AML) procedures to mitigate potential risks associated with cryptocurrencies. Additionally, there have been instances of bans or restrictions on certain crypto-related activities, such as initial coin offerings (ICOs) or cryptocurrency exchanges, to protect investors and the broader financial system. Yet we frequently see banks engaging in illegal activities, very often with little to no repercussions.
There’s a strong argument to be made that the powers that be in certain established Western powers fear the idea of relinquishing their overbearing control over their populace. Many liken where we are in this evolution towards Web3 with the early developmental stages of the internet. We certainly have a long way to go before reaching the true potential of blockchain technology. So, what sense does it really make to staunchly oppose technological advancement and run the risk of being left behind if the true role of government is to strive towards the betterment of life for their citizens?
The war between crypto acceptance and the attack on crypto witnessed in different parts of the world highlights the diverse attitudes towards cryptocurrencies. While some regions have embraced the potential benefits and sought to create supportive environments for innovation, Western powers have adopted a more cautious stance, prioritising regulation, and risk management.
One could argue that the different approaches stem from cultural, economic, and political variations. Regions accepting cryptocurrencies often exhibit a greater openness to technological disruption, an entrepreneurial spirit, and a desire to position themselves as leading players in the digital economy. Conversely, Western powers, with their established financial systems and concerns over stability, are more inclined to exercise caution and take a measured approach.
It is essential to strike a balance between innovation and regulation to harness the potential benefits of cryptocurrencies while addressing the associated risks. As the crypto landscape continues to evolve, finding common ground and fostering dialogue between different approaches will be crucial in shaping a sustainable and inclusive future for cryptocurrencies.
Alternatively, many are turning to DeFi. When it comes to financial matters for you, me or anyone, circumstances should be apolitical. The true potential afforded by DeFi allows for the removal of a few largely irrelevant and often biased points of view that hamper progress for all. That is the true beauty of what’s happening in this space. Perhaps it’s exactly the notion of losing their relevance in these matters that are motivating powerful bodies to try and stifle it as best as possible. Fortunately for the rest of us, DeFi is here to stay. The revolution has only just begun.
About Alvara Protocol
The Alvara Protocol is a decentralized platform that utilizes the ERC-BTS (Basket Token Standard) to create and manage funds on the blockchain. Alvara offers a comprehensive fund Factory and Marketplace, with a transparent leaderboard showcasing the performance of every BTS created. ALVA and veALVA tokens assume crucial roles in driving the ecosystem’s growth and governance with veALVA holders wielding significant influence over the substantial ALVA reward stream. Removing traditional barriers, Alvara fosters a democratic meritocracy in crypto investing, enabling full lifecycle fund management, from creation to ownership transfer, within its seamless framework.