The Global Financial System and Digital Currencies: The Dialectic of Conflict and Convergence — A Case Study of the United States of America

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Abstract

This study examines the conflictual relationship between supporters and opponents of cryptocurrencies in the United States, where this debate is particularly pronounced. Employing a dialectical approach, the research analyzes the growing prominence of pro-cryptocurrency trends, particularly in the realm of political influence, as exemplified by Donald Trump’s courting of the crypto community during the U.S. presidential election and the significant crypto-based donations observed in the election cycle. Conversely, the anti-cryptocurrency trend underscores concerns about the decentralized nature of cryptocurrencies, the lack of regulatory oversight, and the surge in fraud and corruption cases within the crypto space, all of which may threaten the stability of the U.S. financial system. The methodology combines dialectical analysis of the debate with a review of quantitative data and statistics to substantiate the arguments of both sides. The findings reveal that while cryptocurrencies present both risks and opportunities, the crypto community has gained sufficient influence to shape political outcomes, as demonstrated in the U.S. elections. The study concludes with several recommendations: distinguishing the negative aspects of cryptocurrencies, such as decentralization and fraud, from their potential to positively impact economic and political systems; and recognizing that as the cryptocurrency market expands, adoption and regulation will be essential to manage financial flows within blockchain systems. Finally, the study notes that countries such as Algeria, which currently ban cryptocurrencies, may miss out on the economic opportunities they offer, despite the associated risks.