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.
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