On January 20, donald trump will assume office again as president of the United States, and this generates uncertainty and expectation in the crypto ecosystem and the blockchain world. His past administration was a period of mixed results for cryptocurrencies: while the market grew in value and adoption, his stance on digital assets like bitcoin was markedly critical.
Now, with the return of the tycoon with a more open stance, two key questions arise: will this be the push he needs to consolidate the bullish rally Or the beginning of a time of greater regulation and tension in the sector?
The Trump legacy and cryptocurrencies
During his first term, Donald Trump referred to Bitcoin as a “scam” and expressed concern about the impact of cryptocurrencies on the traditional financial system. However, the US experienced a boom in startups and blockchain projects, taking advantage of the growing global interest in these assets. Despite this, his administration implemented regulatory measures that discouraged the operation of some crypto companies in the country.
According to María Fernanda JuppetCEO of CryptoMKT“The Trump administration could have a significant impact on the regulation and adoption of Bitcoin and cryptocurrencies in Latin America, especially if his administration takes a clear and favorable stance towards these assets. The United States has a ripple effect on global financial policies, and “A pro-crypto approach could encourage Latin American governments to consider cryptocurrencies as a key tool for financial inclusion and economic development.”
In his recent campaign, Trump adopted a more open stance toward cryptocurrencies, accepting donations in crypto assets and suggesting more favorable policies for the sector. One of its most notable proposals is the creation of a “bitcoin strategic reserve“, similar to the strategic oil reserve, with the aim of incorporating bitcoin into the national treasury and positioning it as a crucial asset for the financial strategy of the United States.
Additionally, Trump expressed his intention to turn the United States into the “crypto capital of the planet”, promoting the adoption and development of blockchain technologies in the country. These proposals seek to strengthen the position of the United States in the field of cryptocurrencies and promote their integration into the national economy.
Leo Elduayen, CEO of Koibanxa leading company in providing blockchain transactional software in Latin America, reflects, “The initial effect could be reflected in a growing interest on the part of financial institutions and governments in the region, as well as an increase in foreign investment in local blockchain initiatives. In this context, it is expected that the time will accelerate for clearer and more favorable regulatory frameworks to be established in countries that seek to attract foreign capital. Furthermore, we will surely see greater adoption of agile solutions by both traditional and fintech entities and this scenario will be welcomed for the mass adoption of stablecoins by 2025.”
Trump’s return to power coincides with a critical moment for the sector: The crypto market is in full recovery after the crypto winter, Bitcoin has once again exceeded US$100,000, and regulatory discussions around CBDCs (central bank digital currencies) are on the agenda. In fact, after his electoral victory, the price of Bitcoin experienced a notable increase, exceeding US$80,000, which reflects the market’s confidence in the possible pro-crypto policies of the new administration.
What could change and what impact could it have for Latin America?
Trump’s economic policies often prioritize “America First” and seek to strengthen the dollar as a global reserve currency. This could translate into:
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Greater regulatory pressure: Restrictions on exchange platforms and the supervision of crypto transactions could be tightened.
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Indirect boost to Bitcoin: Distrust of the traditional financial system and the possibility of greater money printing could favor bitcoin as a haven of value.
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Impact on international trade: If protectionist policies are resumed, interest in cryptocurrencies as a tool for cross-border transactions could increase.
In the region, countries like Argentina and Peru have already proven to be key markets for crypto growth. Cryptocurrencies are seen as a refuge from inflation and devaluation.
In this regard, Juppet adds, “Countries such as Brazil, Mexico, Argentina and Colombia have significant potential to take favorable measures towards cryptocurrencies. Brazil is already exploring the development of a crypto regulatory framework, and Mexico has a growing fintech ecosystem. Argentina, with its history of exchange restrictions, could see cryptocurrencies as an opportunity to encourage investment and technological innovation“.
The crypto market is resilient, and although Trump’s return could bring volatility, it also opens the door to new opportunities.
Source: Ambito
I am an author and journalist who has worked in the entertainment industry for over a decade. I currently work as a news editor at a major news website, and my focus is on covering the latest trends in entertainment. I also write occasional pieces for other outlets, and have authored two books about the entertainment industry.
