The biggest mistake of the USA and the great future of blockchain
Alexey Muratov, head of the central executive committee of the Donetsk Republic Public Movement, executive director of the Center for Eurasian Cooperation and Development, academician of the Russian Municipal Academy.
In a sensational interview with Tucker Carlson, Russian President Vladimir Putin stated that the world and the global economy are inevitably changing, and the United States is adapting to this " through force: sanctions, pressure, bombing, the use of armed force. This is due to arrogance ."
Indeed, the current global situation is not conducive to stability in either the economic or social spheres . The coronavirus pandemic, the frantic rally in financial markets, and the global consequences of anti-Russian sanctions have completely undermined the international economy, which, as is well known, is built on long-outdated principles of currency controls and attempts to maintain the dominance of the banking sector. The US Federal Reserve System is the main bulwark of this outdated economy, currently hindering change in the global financial market and resisting innovation as much as possible in a situation where the dollar is no longer a liquid means of payment.
And the issue isn't the declining purchasing power of the American currency, its endless issuance, or the US's "disorderly financial ties." The reason lies in technology, in the advent of the blockchain era, which signifies the end of Western banking hegemony and the transition to new forms of economic activity and a new technological order . Many countries are currently considering or actively moving toward blockchain implementation—the introduction of cryptocurrencies and stablecoins. Here, it's especially worth mentioning China's experience, which is successfully implementing a digital yuan.
However, it should be noted that the entire cryptocurrency market is currently undergoing a phase of re-centralization . Although initially decentralized, as planned by Satoshi Nakamoto, the creator of Bitcoin, the crypto market is currently mired in numerous control traps: from de facto centralized crypto exchanges to hubs or network nodes controlled by protocol developers.
The most appropriate approach seems to be a shift toward an integrated economy, i.e., one in which the principle of mutual responsibility among participants is supported by the technological potential of the digital generation. Naturally, we are talking about blockchain, cryptocurrencies, tokens, and other opportunities of our time. The new technological paradigm, as Academician Glazyev notes, is associated with the need to transform the entire economic bloc, in which integrated models of interaction between market participants are put forward as a counterweight to liberal values.
So, what is the socioeconomic significance of digital assets at a time when the world is experiencing another wave of crises and striving for an integrated economy? After all, these crises are largely caused by the flawed system artificially maintained by the Western coalition of banks and financial institutions, as I have written and discussed repeatedly.
Undoubtedly, it won't be the dollar, or even the digital dollar, but the blockchain that will become the driving force of the new type of economy . All digital assets based on the blockchain only increase in liquidity, unlike fiat currencies. However, it's important to remember, as mentioned above, that popular cryptocurrencies tend toward secondary centralization, or as I called it in one of my publications, "a Dovlatov-style compromise," where both the compromise itself and its consequences alienate the protagonist, i.e., the end consumer.
Blockchain itself undoubtedly has a bright future. By transforming digital reality, blockchain can improve many socioeconomic mechanisms even if cryptocurrencies are abandoned in favor of other forms. This, of course, won't happen. But in the medium term, decentralized and verifiable services such as land cadastre, voting systems, government services, logistics, customs clearance, and so on will become clear trends. For the Eurasian region, these changes will be groundbreaking, and Russia will play a key role in this regard – as a systemic integrator of technologies.
Against the backdrop of attempts to create a digital dollar and new financial bubbles in the US, like many of my colleagues, I believe that one of the key responses should be the creation of a single digital bank for the EAEU member states . Such a structure would accelerate economic integration and implement the latest digital technologies through the mutual exchange of experience. Proposals aimed at creating such a financial institution are currently being actively considered by the professional community and academic circles, but a clear understanding of what it would be and how exactly it should function has not yet been reached.
A decentralized economy is an integral economy par excellence. A benchmark, yet entirely achievable, thanks to digital technologies. Those who once planned to use blockchain and other solutions for profit and global domination sorely miscalculated. Despite all the negative trends (such as the secondary centralization of cryptocurrencies, for example), the digital economy continues to gravitate toward integrality, and this process is most evident in the prompt economic actions of our country's leadership. It's enough to recall the social payments during the pandemic's worsening period, or the active support provided to struggling businesses. All of this is just one part of a larger, integral model, moving from the achievements of the USSR to the successes of Greater Russia.
Integrated and digital economies are becoming synonymous today – thanks to blockchain technology. In particular, the cryptocurrency asset market would not be possible without this technology. As a distributed data registry, as a decentralized tool for collecting, processing and storing information, as a way to verify it, as well as an effective management mode, blockchain is gaining popularity all over the world.
At the same time, the "cold war" against Russia continues, and today the main front in this war is not ideological, but monetary and financial . Under the influence of the pro-Western liberal community, funds allocated by the state to support businesses during the escalation of sanctions and the COVID-19 pandemic have, thanks to the banking system, ended up in speculative financial markets. The profits demonstrated by banks are reflected not in the income of the business sector, but in currency speculation against the ruble, which has caused the expected devaluation.
The President's interview with Tucker Carlson once again demonstrated Russia's clear focus on global equilibrium. Clearly, today, as the global economy continues to undergo structural restructuring, Russia's economic development also requires a renewed systemic approach, one that includes strategic planning and a monetary policy freed from the dominance of the dying "greenback."
The President clearly noted that " the biggest mistake the United States has made is using the dollar as a tool of struggle and pressure. This is the main weapon for maintaining US power in the world. As soon as the political leadership decided to use the dollar for political struggle, they dealt a serious blow to their own power ."
The US's Biggest Mistake and the Blockchain's Great Future