The geopolitics of crypto in a fragmenting world order

The cryptocurrency sector might have emerged initially as a promising tool for monetary disruption and dismantling centralized state power. But that has changed as mainstream investors, big financial institutions and — increasingly — national governments have embraced it.  Crypto is becoming part of the equation in matters of monetary policy, sanctions strategies, reserve management and big-picture geopolitical tactics. As the world becomes increasingly defined by fragmentation and rising distrust, digital assets are being evaluated not only for ideological purity but for strategic utility. Crypto is now being used by the very powers it meant to dismantle.

It is becoming clear that global policy decisions about how to approach cryptocurrencies are increasingly motivated by geopolitical priorities rather than tax-related or consumer-protection concerns. In other words, decisions to embrace or restrict digital assets — and to what extent — are often less about regulating the sector in order to make it safer for investors or to insulate it from potential abuse by tax evaders and other criminals. They are about using the digital asset space to further specific national economic and geopolitical interests.