Donald Trump’s pledge to make the United States the “crypto capital of the planet” has reignited global discussions on the role of digital currencies in reshaping traditional finance.
Cryptocurrencies, first introduced by Bitcoin in 2009, have long been championed as a decentralized alternative to traditional financial systems. Powered by blockchain technology, crypto offers a transparent ledger of transactions that bypasses central authorities. Despite its promise of financial independence, the industry has faced challenges, including a culture criticized as elitist and speculative, deterring broader adoption.
However, 2024 marked a pivotal year for cryptocurrency, thanks in part to the re-election of Donald Trump as US president. Trump’s landslide victory was largely fueled by his promise to reinvigorate the economy and put money in voters’ pockets. He notably reversed his earlier criticism of crypto, declaring his intention to position the US as a global leader in the sector.
“The awareness for crypto and blockchain is increasing daily,” said Temple Melville, a leader in Scotland’s cryptocurrency scene. “Politicians and civil servants don’t really understand what crypto is about at all. And it’s much easier from their point of view to simply ignore it.”
A Global Movement, A Local Struggle
Trump’s victory and subsequent regulatory promises have had an immediate impact on the cryptocurrency market, with Bitcoin’s value rising by more than 50% since November 2024. A Harris Poll revealed that one-third of US voters considered a candidate’s stance on cryptocurrencies before casting their votes.
This surge of interest has reignited conversations in the UK, particularly in Scotland, where crypto advocates have long been pushing for greater recognition. In 2014, Edinburgh entrepreneur Derek Nisbet introduced Scotcoin as a potential economic bridge for an independent Scotland. Although the initiative evolved into an ethical cryptocurrency under new leadership, its broader adoption has been stymied by regulatory hurdles.
“Politicians shouldn’t underestimate it,” said Daniel Taylor, research and policy lead at digital assets firm Zumo. “Younger generations are leaning towards alternative systems of finance. They don’t see the financial opportunities they want and expect, and so crypto becomes an escape valve in that environment.”
Regulation: The Double-Edged Sword
The UK Government has been cautious in its approach to crypto. In 2023, the Treasury Committee recommended regulating investments in unbacked crypto assets as gambling, citing concerns about volatility and consumer safety. The Treasury itself argued that such a classification could conflict with international standards.
The introduction of the Property (Digital Assets) Bill in September 2024 marked a step forward, aiming to recognize cryptocurrencies as personal property. However, experts like Taylor warn of the trade-offs: “Stricter regulation attracts big business that relies on assurance, while freer jurisdictions foster startups and innovation. It’s a question of priorities.”
Global Impact and Uncertain Futures
On a global scale, cryptocurrencies are being explored as tools for economic equality. In 2021, El Salvador became the first country to adopt Bitcoin as legal tender, hoping to bolster its economy. Despite scaling back some initiatives under pressure from the International Monetary Fund, the country continues to grow its crypto reserves.
As digital currencies reshape global finance, the debate intensifies: will crypto deliver on its promise of a fairer economic system, or will early adopters cement their dominance, leaving others behind?
For now, the world watches as nations grapple with the opportunities and risks posed by the crypto revolution.
