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.
- 11700 Views Investigators find underground chamber beneath Beirut port wreckage: Reports
- 8088 Views Indonesia volcano Mount Sinabung erupts with tower of smoke and ash
- 1617 Views Lebanon PM resigns less than a week after deadly Beirut explosion
- 1488 Views Hezbollah softens stance on Israel maritime border dispute after Lebanese rage
- 737 Views Explosion hits near Iraq-Kuwait border crossing: Iraqi security source
- 558 Views Read full resignation speech of Lebanon PM Hassan Diab
- 212132 Views Massive explosions rock Lebanon’s capital of Beirut; Trump says it was an ‘attack’
- 61647 Views Watch: Closest footage yet of Beirut blasts from apartment balcony opposite port
- 45204 Views Dubai to enforce flexible working hours starting from August 16
- 40522 Views Beirut explosion: Missing port worker found alive in sea 30 hours after Lebanon blast
- 36538 Views Watch: Beirut explosion sweeps away bride and groom posing for wedding pictures
- 18737 Views Beirut blast is the most tragic: 6 explosions, fires around the world within 72 hours