Even investment banks and central banks are promoting them.
Donald Trump and Elon Musk’s friendship was not based solely on their political views. Their relationship was rooted in economic interdependence and the strategic use of monetary and fiscal systems to position cryptocurrency as a centralised monetary solution.
Cryptocurrency was once associated with underworld activities, such as criminal enterprises laundering money from drugs and other illegal ventures. Elon Musk helped bring it into the mainstream by encouraging consumers to invest in Bitcoin as a method of purchasing Tesla vehicles. Many bought into the idea and acquired Bitcoin.
Although cryptocurrency was initially considered an amateur investment tool, its unregulated nature led to significant problems. Companies began launching their coins and then closed trading once the product underperformed, leaving investors exposed.
As these amateur investment schemes began to fade, many people still saw cryptocurrency as an opportunity for quick profits. Banks and other financial institutions started losing their control over the flow of money.
Third-party trading platforms such as Coinbase gained popularity, particularly among young adults who chose to invest their wages in cryptocurrency instead of traditional savings accounts, which typically generate profit for banks.
Central banks began to lose monetary control as the lack of legal frameworks surrounding cryptocurrency threatened to destabilise traditional financial systems.
China took action by regulating cryptocurrency transactions and introducing laws to give its government oversight and authority. These measures enabled the Chinese central bank to monitor digital currencies more closely and align them with the economic performance of the yuan. This created a structured framework allowing cryptocurrencies to be balanced against China’s national currency.
Following China’s lead, Western nations saw an opportunity to introduce similar regulatory measures. Central banks in the West pushed governments to enforce strict guidelines aimed at preventing losses from poorly regulated lending and investment practices.
Cryptocurrency traders became subject to increased scrutiny to deter fraudulent activities. These regulations have since enabled cryptocurrency to be legitimised as a financial trading asset. Institutions such as JP Morgan, Citibank Group, and others have announced their intentions to incorporate cryptocurrency into their portfolios as bonds and stocks.
This marks a shift towards using cryptocurrencies to stimulate growth in the financial sector. Banks now see crypto as an opportunity to increase market capitalisation and strengthen financial tools to meet corporate and consumer demands.
Trump’s enthusiasm for cryptocurrency indicates his support for its mainstream adoption. The fact that banks and other financial institutions are now using it as a financial asset shows that the United States aims to be a leading force in crypto-technology. This also highlights the growing economic rivalry between China and the US, as both nations seek to advance their financial systems. There is no doubt that cryptocurrency has entered the big league, and with regulation in place, banks and capitalist elites stand to profit significantly from its rise.
