The fundamental nature of money is changing: only a few years ago, the nexus between geopolitical risk and cryptocurrency was virtually non-existent. Today, their intersection is central to long-term global economic order. Before delving into how that relationship is playing out, some basics: A cryptocurrency – like bitcoin – is a type of digital currency based on a network of independent computer nodes that confirm transactions through decentralized consensus. Put simply, Blockchain is the underlying technology of bitcoin. Oil and uranium have long been considered geopolitical tools of influence – similarly, national cryptocurrencies and blockchain will be employed to create and sustain influence in the global financial system. That reality has shaped an ongoing arms race to the next global reserve currency. It’s one thing having profit-driven tech giants like Google, Amazon, IBM and Microsoft invest in blockchain for innovation; but it’s an entirely different matter when states go into blockchain technologies with various – often conflicting – national priorities. This begs the following question: So what? What would the rise of an encrypted digital currency mean for world order? Why is there a fierce competition for digital currency supremacy? These are the questions animate my take, and more importantly, the future of geopolitical great-power competition.
Pariah states seek to unseat the mighty dollar with crypto
Disclaimer: Views expressed by writers in this section are their own and do not reflect Al Arabiya English's point-of-view.
- 7539 Views Coronavirus outbreak in Saudi Arabia ranks at high risk: Expert metrics
- 2743 Views Video of large bird flying away clutching a ‘shark’ in South Carolina goes viral
- 1214 Views Iran kept airspace open on day it downed Ukraine plane to conceal US base attack plan
- 1067 Views Coronavirus: Community spread most likely cause of UAE outbreak
- 630 Views Coronavirus: The man with the golden face mask is Indian
- 229 Views Chlorine gas leak at Khuzestan plant sickens 70 in Iran
- 42964 Views New pig ‘flu’ virus, G4 strain of H1N1, has human pandemic risk: Chinese research
- 42398 Views New coronavirus mutation may make COVID-19 spread faster, says Fauci
- 27627 Views UAE travel rules amid coronavirus: Top questions answered if you are planning to fly
- 21616 Views Coronavirus: UAE suspends flights from Pakistan, special COVID-19 test lab planned
- 16198 Views Outrage in Lebanon after video of three men sexually assaulting young Syrian boy
- 13609 Views Abu Dhabi allows entry with new rules amid coronavirus lockdown: All you need to know