It is not a question of assessing the current political situation or responsibility. Rather, the examples are intended to illustrate that crypto currencies, and thus Bitcoin first and foremost, can be used as a political negotiating tool. Although Bitcoin’s relevance on the global foreign exchange market may seem tiny, the decentralised and nationless form of money brings with it new scope for action.
In theory, Bitcoin can lead to a formal depoliticization of foreign exchange transactions, since institutions such as central banks or financial supervisory authorities cannot exert an institutionally regulated influence on Bitcoin. This does not mean that crypto bans or even attacks, such as a 51 percent attack, cannot influence the ecosystem and the corresponding crypto adaptation.
Music of the future crypto trader
So far, crypto trader, companies and governments have not made full use of this alternative. There is a lack of trading partners and an infrastructure, especially since the still high volatility would make trading transactions even more difficult. So if an oil company, whether state-owned or private, were to attempt to conduct its oil business in Bitcoin, it would fail miserably and bounce off too many technical and above all political hurdles and also crypto trader scam.
So far, Bitcoin is primarily a currency for private individuals and not for companies or public institutions. Over time, however, a rethink is to be expected, especially from politically excluded countries or countries struggling with inflation.
And it doesn’t even have to be the sanctioned countries that can benefit from Bitcoin payments. Even medium-sized companies that supply exports such as machines and cars all over the world could benefit from fast and unbureaucratic transactions. Instead of having to own several foreign currency accounts, a corporate bitcoin wallet could bring additional flexibility to the export and import business by, for example, shortening payment periods through faster international payments.
These are, of course, all theoretical ideas that will not be put into practice in the short or medium term. But this is exactly what it is all about with a view to major technologies such as blockchain, artificial intelligence or the Internet of Things. Not only to have the next weeks or the next two years in sight, but also the next five years. Even if crypto currencies will not be used in the near future for large commercial transactions, especially by corporations or state-owned companies such as institutions, it is important to think through various scenarios.
To what extent can states influence the crypto-economy regionally? Will there be a need for separate agreements in future if conflicts of interest are no longer only to be dealt with on the Fiat currency exchanges, but also on the crypto exchanges? What could state Bitcoin sanctions look like? How can the decentralised logic of the crypto economy be brought together with the often central organisational logic of the regulatory authorities?
Many questions, few answers. This is precisely what makes the crypto-economy so exciting and should encourage anyone interested in cryptography to conduct thought experiments.