When Bitcoin, the first cryptocurrency, was launched in 2009, it was viewed with skepticism by a majority of the people in the world.
In 2024, there will be thousands of altcoins to compete with Bitcoin. The number of cryptocurrency users has reached around 560 million in the world, which is a significant majority to command decision-making in any nation.
2024 is a significant year in international politics as 64 countries, excluding the European Union, will be facing general elections to determine their national leaders.
The US and India are the two largest players on the ground. Nearly half of the world’s population will vote for change or status quo this year.
So, what are the ramifications of cryptocurrency in world politics? Are the crypto holders a sizable group to controls the outcomes of political elections in major economies? Will the community of crypto holders decide the new standard operating procedure of world finance?
In this article, we will examine the influence of cryptocurrency on world politics by analyzing its influence on America and India, the two major powers in the world.
Keep reading this article to learn more about the potential of cryptocurrency as a political issue.
Cryptocurrency Adoption and the US Elections
The United States is the most powerful economy in the world. The nation has the power to sweep any minor changes to major developments in the financial sector.
In the United States, almost 7% of the adult population are crypto holders. The adoption and promotion of cryptocurrency is a major policy issue there with the Republican candidate Donald Trump supporting the cause of decentralized, digital transactions and the Democratic faction’s candidate Joe Biden campaigning against policy changes in the digital space.
Bitcoin halving, the event where the price of Bitcoin is reduced to reduce the market supply of the token, is a major event in the digital marketplace that increases the interest of investors.
Another major reason for the rise of cryptocurrency in the US financial system is the confirmation by the US Securities and Exchanges Commission (SEC) about the setting up of the Bitcoin Exchange Traded Fund (ETF).
So American voters are considering cryptocurrency as a profitable long-term investment opportunity in 2024. So the outcome of the elections is likely to sway towards those factions who promise policy changes in their favour.
According to a survey by Geyscale, 49% of the voters in America are looking forward to including cryptocurrency in their investment portfolio. That means cryptocurrency adoption is a bipartisan issue in American politics.
Statistics show that 18% of Republicans and 19% of Democrats own cryptocurrencies at present. So cryptocurrency is not related to any particular faction in the US. So there is a high chance that the votes can split irrespective of the political affiliations of the voters.
Has Cryptocurrency Had any Influence on Indian Politics?
The general elections to the Indian parliament just concluded last month and the results were declared. The incumbent government has won a third term. Has cryptocurrency influenced the Indian elections in any way? The simple answer is no.
The Indian policies have not been generally welcoming for the digital currency even though the financial sector has made policy changes to encourage digital transactions of the fiat currency.
The Indian Government’s skepticism towards the adoption of digital currencies is thought to continue for a few more years. A swift policymaking and adoption will be unfeasible for this highly populated nation.
Moreover, a majority of the Indian population is still unaware of the possibilities of cryptocurrencies. Due to these reasons, cryptocurrency has not had any influence on the Indian general elections.
The Bottom Line
The answer to the question of whether cryptocurrency adoption has become a political issue or not is region-specific.
The United States, being a developed country, has a major share of its citizens using cryptocurrency, whereas a majority of the Indian population is unaware of cryptocurrency or the benefits of digital transactions.
The political attitude of the people towards cryptocurrency adoption depends on their specific needs and requirements. So, a general statement about cryptocurrency being a global political issue cannot be made.
However, it is undoubtedly that the increasing number of crypto users can be a major factor in the future.
