From Blockchain to De-dollarization; The Impact of Global Policies on the Future of the Crypto Asset Industry
In today’s financial world, global political and economic changes have profound effects on financial markets, including crypto assets. In this context, crypto industry experts analyzed the impact of international policies, including the U.S. presidential election, de-dollarization in BRICS, and blockchain opportunities in the global economy, as well as Iran’s challenges in this field.
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The specialized meeting “Review of International Political Developments in Financial and Crypto Markets” was held in November 1403 (Persian calendar). Crypto asset sector activists analyzed global economic policies, the importance of developing the crypto asset market, and the existing challenges in Iran, including the lack of clear regulations and unfair competition between domestic and foreign platforms.
At the beginning of the meeting, “Abbas Ashtiani,” head of the Blockchain and Cryptocurrency Commission of the Computer Trade Organization of Iran, spoke about the impact of the U.S. elections on financial and crypto markets: “For months, attention has been drawn to the U.S. elections. With the U.S. accounting for more than 20% of the global GDP, its influence on markets with global assets, such as gold and crypto assets, is substantial. However, candidates’ statements before the elections are mostly promotional and will not necessarily translate into their future policies.”
He referred to the U.S. interest rate and its impact on financial markets, explaining: “The increase in interest rates in the U.S. aims to attract idle liquidity to banks and channel it into production to combat inflation. This decision, with the consequence of reduced consumption, can lead to stagflation. To overcome this situation, governments must lower interest rates to return money to circulation. Thus, following the Federal Reserve’s interest rate cuts, price increases in gold and crypto asset markets have occurred. Moreover, during the COVID-19 pandemic, over 4 trillion dollars were printed in the U.S. and Europe, which gradually entered the economic cycle and will drive renewed growth in investment markets. However, events like military tensions or global crises such as COVID-19 can impact people’s economic behavior, reducing their risk appetite in the crypto market.”
The Difference Between Cryptocurrency and Crypto Asset: A Misconception Threatening Iran’s Market
The head of the Crypto Commission of the Trade Organization highlighted the existing challenges in the country regarding the adoption of crypto assets: “Countries are gradually preparing themselves for the acceptance of this new asset class. A case in point is major companies like BlackRock entering the crypto market through instruments such as ETFs. Various countries, recognizing the fluid nature of crypto assets, are supporting their domestic platforms. Unfortunately, Iran has not taken any serious steps in this regard.”
Ashtiani emphasized the need to draft appropriate regulations and understand the nature of crypto assets, stating: “In Iran, due to the incorrect definition of ‘cryptocurrency,’ various institutions, including the Central Bank, have intervened to regulate this sector, whereas crypto assets should be considered ‘crypto assets’ rather than just cryptocurrencies. Domestic platforms in Iran prioritize consumer rights and transparency, offering standardized and lawful services, which help reduce legal issues related to foreign platforms. However, a major challenge remains the underground market and foreign platforms competing freely with domestic ones, posing a serious threat to the future of Iran’s digital economy.”
Governmental Policy Duality in Dealing with Blockchain and Cryptocurrencies
Eisa Keshavarz, Chairman of the Board of Directors of Ubitex, discussed the role of blockchain and crypto in creating a more democratic world independent of governments, stating: “With the emergence of blockchain, humanity has found an opportunity to break free from governmental laws and regulations and establish a more democratic world. These technologies, similar to platforms like WhatsApp and Telegram, enable the free exchange of information, news, and content. Many governments, including Iran, due to infrastructural issues and a lack of readiness for technological advancements, approach blockchain with fear and anxiety. However, instead of resisting, countries should use these technologies to solve economic problems, attract foreign investment, and improve their financial systems. Otherwise, their opposition to these technologies will deepen their technological and economic gaps with more advanced nations.”
He stated that the current value of crypto assets is insignificant compared to the country’s overall transactions and emphasized the need for a shift in approach and the acceptance of these technologies. He added that countries, especially Iran, must allow crypto-related innovations to operate within a risk statement framework or managed sectors to benefit from their advantages and move away from traditional infrastructure challenges. Currently, the private sector, without government support, has tried to gain public trust. Despite the significant costs of changing consumer preferences and attracting people to domestic platforms, some government policies, instead of supporting them, are driving users toward foreign platforms.
The chairman of the board of directors of Ubitex pointed out inconsistencies and contradictions in government policies, stating that such actions stem from haste and a lack of expert analysis. Despite various efforts and discussions, a common ground in policymaking has yet to be reached. He stressed that the democratization of cryptocurrencies and the expansion of blockchain is an irreversible path for all governments. With the emergence of “superhumans” and new professions, many restrictive local laws and regulations will become obsolete, pushing the world toward a decentralized digital space.
Financial Corridors Complementing Logistic Corridors
Pooria Asteraky, editor-in-chief of “Crypto Assets: Blockchain Research Journal,” analyzed the impact of global developments, particularly the U.S. elections, on the crypto market, stating: “The value of the crypto asset market is currently around $2 trillion, but in the next five years, it will reach $25 to $30 trillion. This growth is not only due to the increase in crypto asset prices but also the structural transformations in the internet world. The term Web 3 was introduced by the crypto community in 2014. Web 3 has two pillars: blockchain and artificial intelligence. Through this, one of the most significant global transformations, the tokenization of real-world assets, is taking place, leading to the emergence of the token economy. This change will be even more significant than the Industrial Revolution or the birth of the web and the internet.”
Asteraky emphasized the importance of NFT technology in wealth creation, stating: “Web 3 changes asset valuation in various markets, including art, precious metals, gold, and stocks. For example, if we compare the global art market, valued at $65 billion, with the NFT market at $68 billion, we see how tokenizing assets on blockchain has revolutionized wealth creation. Fundamental economic and wealth changes will lead to global conflicts, and those who grasp the significance of tokenized economies first will respond more swiftly. This is evident in American think tanks that identify both the risks and opportunities of crypto assets.”
The editor of the Blockchain Research Journal, stating that the corridor wars, logistics of trade routes, and global commerce are the future, said: “In today’s world, in addition to competition over trade routes, there is also an ongoing competition over the transfer of money and value. It should be noted that corridors are created for the movement of goods, and the goods passing through them are exchanged in return for financial transactions. Therefore, the other side of the corridor war is the war over financial infrastructures. The corridor wars manifest along these routes, and one of the manifestations of financial wars is the BRICS alliance.”
Asteraky continued: “BRICS began its activities in 2007, but before the Ukraine war, it had not engaged in significant global actions. After Russia’s attack on Ukraine and the imposition of severe sanctions, Russia realized the necessity of an alternative solution in less than three months. At the same time, de-dollarization is one of BRICS’ primary objectives. De-dollarization involves two aspects: first, reducing countries’ dollar reserves and replacing them with gold or another nation’s fiat currency; and second, conducting international transactions using alternative currencies. This trend, especially with the increase in gold reserves in China and Russia, signifies major shifts in the global financial system. It was during this period that new members, such as Iran, joined BRICS to strengthen their financial convergence.”
He pointed to BRICS countries’ efforts toward de-dollarization, explaining: “One of Russia’s initiatives is to create a cryptocurrency backed by real-world assets or fiat currencies of BRICS member states on Russia’s financial infrastructure (MIR), enabling not only central banks but also the people of BRICS countries to use it. Additionally, over the past few years, China has been expanding new financial systems. One such system is mBridge, which facilitates financial transactions using central bank digital currencies (CBDCs) from five countries—Saudi Arabia, Hong Kong, China, Thailand, and the UAE—instead of the US dollar. This means that even a country like Saudi Arabia, which has never faced sanctions, recognizes the importance of finding an alternative to the dollar.”
The Blockchain Research Journal editor further stated: “Another Chinese initiative is the launch of CIPS (Cross-Border Interbank Payment System), which allows countries seeking to trade with China to conduct transactions in yuan without relying on the dollar-based SWIFT system. Iranian cryptocurrency ecosystem participants have also proposed initiatives within BRICS, such as asset tokenization for real-world commodities like gold, copper, oil, and Bitcoin or using CBDCs to facilitate financial transactions, aiming to create better trade conditions for Iran.”
Asteraky also discussed the impact of the U.S. elections on the crypto market, stating: “In the U.S., there are two main perspectives on cryptocurrencies: the libertarians, who support them, and the globalists, who oppose them. Donald Trump does not have a particular philosophical interest in cryptocurrencies, but he seeks to control the crypto market. Trump understands that with rising U.S. debt and the declining value of the dollar, new tools are needed for economic control. He knows that suppressing the crypto market is not the right approach, and for this reason—not out of an affinity for decentralized finance, but as a means of controlling the market—he has shown interest in Bitcoin and aims to increase Bitcoin mining within the U.S.”
National Economy Overshadowed by Superficial Approaches to Crypto Assets
Shahriar Shafiee, head of the scientific committee of the Iran Brand Academy, referred to the confrontation between globalists and non-globalists, consisting of libertarians and nationalists, stating: “Figures like Trump, advocating for ‘Make America Great Again,’ seek to leverage various markets for their own benefit. In this context, the role of crypto assets in global and Iranian economies is also significant.”
Shafiee noted the acceleration of global knowledge doubling, explaining: “Today, the rate of knowledge doubling has significantly increased compared to the post-World War II period when it took 25 years. Now, knowledge doubles every year. This rapid scientific and technological advancement has led to unprecedented economic and political shifts worldwide, often resulting in economic and physical wars. One of these economic conflicts involves trade corridors and passageways. China, through extensive investments in neighboring countries like Pakistan and Sri Lanka, has created an investment ring around India. However, with Trump in power, the U.S. will be forced to counter China by investing in India, which will have profound effects on the global economy.”
The head of the Scientific Committee of the Iran Brand Academy addressed the fundamental issues in the field of cryptocurrencies and digital assets in Iran, stating: “One of the main problems is the lack of precise and comprehensive conceptualization among Iranian decision-makers. Many people equate cryptocurrencies with digital assets and consider them merely a form of money, whereas such conceptual errors should not be present in national policymaking. Another issue is that we are currently focused on superficial analyses of cryptocurrencies and are not paying enough attention to real opportunities and national interests in this sector.”
Shafiee, emphasizing that Iran has fallen behind its competitors in global trade corridors—an issue that also applies to crypto at the national level—said: “During the crisis of the war in Gaza, trade corridors have accelerated, yet Iran has made no progress in this regard, and today, no major trade corridor passes through Iran. Therefore, we need to have a clear definition of our national interests. In times of crisis, success comes from aligning national interests with individuals’ personal and financial benefits. Crypto and BRICS can serve as a suitable platform for achieving this alignment. While globally, financing is done through stock markets, in Iran, both the financial and monetary markets have gravitated toward banks. The gold and dollar markets in Iran contradict national interests, as Iranian wealth, instead of being directed toward production, is funneled into purchasing gold and dollars. This issue is also evident in the realm of digital assets.”
He also criticized the Central Bank’s conservative approach, stating: “Unfortunately, domestic exchanges must answer to the Central Bank daily. We are not opposed to transparency, but economic opportunities should be transformed into personal wealth in a way that benefits both the national economy and individuals. Iran still lacks a proper understanding of how to manage exchanges and digital assets. If serious and proper actions are not taken, Iran will fall behind in leveraging the opportunities of this global market. Large companies like BlackRock, despite internal debates on crypto, have shifted their assets toward Bitcoin ETFs. However, in Iran, there is only a shallow perception of digital assets, which reflects the country’s inaction and reactive stance toward the opportunities in this sector.”
