Yilun Zhang
Trump’s embrace of cryptocurrency is not a departure from U.S. financial hegemony, but a strategic recalibration—intended to extend dollar dominance while offloading its inflationary and fiscal liabilities onto decentralized, privately issued instruments.
Crypto has become a multi-functional tool in Trump’s second-term governance: a populist wedge in electoral politics, a liquidity substitute under fiscal constraint, and a symbolic instrument in the competition with China’s state-led digital finance model.
Personnel and institutional shifts underscore the administration’s intent to mainstream crypto governance: from replacing SEC and CFTC leadership with industry-aligned figures to advancing deregulatory legislation like the FIT21 Act and establishing a Strategic Bitcoin Reserve.
Trump’s crypto strategy is rooted in structural macroeconomic challenges—including inflation, congressional budget paralysis, and the weakening of industrial investment—making digital assets a synthetic growth engine in the absence of conventional stimulus.
The administration’s digital finance agenda is intertwined with broader geopolitical ambitions: it offers an alternative to China’s centralized CBDC regime by promoting a volatile but more open, dollar-linked crypto ecosystem tailored to speculative global capital.
The combined use of tariffs and crypto represents a twin-track approach to decoupling from China—limiting real-sector integration through trade barriers, while redirecting capital flows via tokenized assets and alternative digital markets.
While global liquidity continues to favor the United States in the short term, this advantage is driven by structural volatility and speculative flexibility—not long-term stability. China’s disciplined, industry-led financial model may eventually regain appeal for institutional investors.
No comments:
Post a Comment