The American elections are approaching and their outcome could well impact the future of cryptocurrencies. Between regulatory uncertainty and institutional adoption, the giants of traditional finance are advancing their pawns. Deciphering a complex situation where politics and technology mix…
A few hours before the American elections, a question is burning on the lips of cryptocurrency enthusiasts: what will be the impact of the result on the future of these digital assets? If speculators are agitated, betting on a rise in Bitcoin in the event of Donald Trump’s victory or a fall if Kamala Harris wins, the giants of traditional finance seem to be looking beyond this short-term agitation. For them, the issue is not so much knowing whether Trump or Harris will move into the White House, but rather how to continue to advance their pawns in the crypto universe, regardless of who sits in the Oval Office.
The big maneuvers of the financial giants
This week, on the eve of the election, several announcements confirmed the intact appetite of financial behemoths for cryptos. Swift, the interbank messaging system used by more than 11,500 financial institutions around the world, has unveiled a partnership with UBS Bank and Chainlink to test the settlement of digital asset transactions through its network. For its part, Citigroup has developed with Fidelity a “proof of concept” of a monetary fund based on blockchain, including a digital currency swap system.
These initiatives demonstrate that for the big names in finance, the question is no longer whether cryptocurrencies have a future, but how to position themselves to take advantage of them. Certainly the result of the election could influence the pace and modalities of this institutional adoption, but it seems unlikely that it will call into question the underlying trend.
A pace of adoption depending on the winner
For Phillip Shoemaker, executive director of Identity.com, a Trump victory could speed things up, with an avalanche of new crypto ETFs and increased use of stablecoins for payments. Conversely, Harris’ success could slow the pace, with a stricter regulatory regime. But in both cases, institutional adoption will continue, even if at a different pace.
It is clear to me that the election outcome will have a significant impact on the pace of adoption. But this will take place in all cases.
– Phillip Shoemaker, Identity.com
Financial giants cautious but determined
If a Democratic victory could make the financial giants a little more cautious, given the regulatory uncertainty, this should not deter them from cryptos. As Brian Dixon, CEO of Off the Chain Capital, points out, the big names in finance are looking, above all, for regulatory clarity. A Harris administration should therefore change its posture to provide them with the predictability they expect.
Under a Harris administration, institutional adoption could follow a more conventional path, with a focus on compliance and integration with existing financial infrastructure.
– Brian Dixon, Off the Chain Capital
Beyond the electoral upheavals, the underlying trend remains favorable to cryptos
Despite regulatory turbulence and market roller coasters, the digital assets industry continues to advance and mature. Cryptocurrencies are attracting more and more fans, but also the attention of traditional finance giants, aware of their potential to improve financial services.
These short-term fixations on the market cause us to lose sight of the bigger picture, namely the place that blockchain technology should occupy in the evolution of the technology that impacts our lives.
– Michael Casey, The Decentralized AI Society
As Americans prepare to choose their next president, one thing is certain: whoever wins, cryptocurrencies will continue their irresistible rise. The financial giants have understood this well and are ready to ride this wave, elections or not. The future will tell us at what pace and in what form, but the movement seems well and truly underway. It remains to be seen who, Trump or Harris, will set the pace.
If a Democratic victory could make the financial giants a little more cautious, given the regulatory uncertainty, this should not deter them from cryptos. As Brian Dixon, CEO of Off the Chain Capital, points out, the big names in finance are looking, above all, for regulatory clarity. A Harris administration should therefore change its posture to provide them with the predictability they expect.
Under a Harris administration, institutional adoption could follow a more conventional path, with a focus on compliance and integration with existing financial infrastructure.
– Brian Dixon, Off the Chain Capital
Beyond the electoral upheavals, the underlying trend remains favorable to cryptos
Despite regulatory turbulence and market roller coasters, the digital assets industry continues to advance and mature. Cryptocurrencies are attracting more and more fans, but also the attention of traditional finance giants, aware of their potential to improve financial services.
These short-term fixations on the market cause us to lose sight of the bigger picture, namely the place that blockchain technology should occupy in the evolution of the technology that impacts our lives.
– Michael Casey, The Decentralized AI Society
As Americans prepare to choose their next president, one thing is certain: whoever wins, cryptocurrencies will continue their irresistible rise. The financial giants have understood this well and are ready to ride this wave, elections or not. The future will tell us at what pace and in what form, but the movement seems well and truly underway. It remains to be seen who, Trump or Harris, will set the pace.
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