The U.S. as the Crypto Capital
President Donald J. Trump has fulfilled his pledge to be the “Crypto President,” setting the United States on a path to becoming the crypto capital of the world. During his campaign, Trump promised at the Bitcoin 2024 conference in Nashville to embrace digital assets, a stance he has since acted upon. Gone are the days of Operation Choke Point 2.0’s punitive measures, which targeted crypto-friendly banks under the Biden administration, and hesitant U.S. flirtations with centralised control via Central Bank Digital Currencies (CBDCs). Instead, Trump’s administration has adopted a bold, bullish stance, pro-innovation (embracing AI) and pro-decentralisation (championing crypto). For instance, the U.S. has seen a 40% surge in crypto-related start-ups since January 2025, according to industry reports, as regulatory clarity attracts entrepreneurs. This shift signals a potential global transition in monetary systems, though some nations remain wary, clinging to CBDCs as a halfway measure.
Europe’s Cautious Stance
Europe now acknowledges that CBDCs are essential to surviving the rising tide of cryptocurrency adoption. The European Central Bank (ECB) has accelerated its digital euro project, with a pilot phase involving 10 million users across five countries set to conclude by late 2025. This urgency stems from the EU’s economic unity, where a pro-crypto shift in member states, like Germany’s recent proposal to tax Bitcoin gains at 15% instead of 25% could weaken the Euro’s dominance. The EU’s CBDC strategy aims to balance crypto’s benefits, such as cross-border payment efficiency (reducing transaction costs by an estimated 20%, per ECB studies), whilst preserving centralised control. Yet, this approach remains siloed, clashing with the decentralised financial wave exemplified by Bitcoin’s projected rise as financial institutions increasingly embrace the crypto revolution.
Points of Contention
- Decentralisation Risks: Europe fears that decentralisation threatens its historic control. The Eurozone’s 20-nation economic union risks fragmentation if countries like Italy pivot to crypto-friendly policies, diluting the Euro’s cohesion.
- Stablecoin Concerns: The EU views stablecoins like Tether (USDT) and Circle’s USDC as a growing threat to monetary sovereignty. These digital currencies, handling vast sums in transactions by 2024, challenge the Euro’s dominance, prompting fears of an unravelling financial order.
The U.S. Crypto Reserve: A Game Changer
On 6 March 2025, President Trump signed an executive order launching the U.S. Crypto Reserve, establishing a Strategic Bitcoin Reserve and Digital Asset Stockpile. This initiative leverages approximately 200,000 seized Bitcoin valued at £13.6 billion based on a conservative £68,000 per BTC at the time of the order, alongside Ethereum (ETH), Ripple (XRP), Solana (SOL), and Cardano (ADA). The reserve, stored in a multi-signature cold wallet audited by the Treasury Department, aims to bolster the U.S. dollar’s global role without new purchases, though analysts speculate an annual acquisition plan could follow by 2026. This move has unnerved Europe, as the U.S. also promotes dollar-backed stablecoins like USDC, which saw a 25% adoption increase amongst global merchants in Q1 2025, reinforcing dollar hegemony.
BRICS: A Historic Shift
Historically, BRICS nations (Brazil, Russia, India, China, South Africa) have explored alternatives to the U.S. dollar-dominated SWIFT network. At the 2024 BRICS Summit in Kazan, President Vladimir Putin introduced ‘BRICS Bridge,’ a new international payments framework utilising blockchain and digital currencies, aiming to counter U.S. dollar dominance and Western sanctions. However, the proposal received limited enthusiasm from BRICS partners like China and India, whose finance ministers did not attend an earlier related meeting. India’s Foreign Minister, S. Jaishankar, declared in February 2025 that India has ‘absolutely no interest’ in undermining the dollar, reflecting concerns over potential U.S. tariffs on nations de-dollarising. Subsequently, the Kremlin stated in March 2025 that ‘BRICS is now prioritising investment partnerships over currency unification, crypto included.’ Additionally, Russia’s digital Ruble pilot, handling £40 million in transactions by January 2025, remains domestically focused, signalling a cautious retreat from its earlier bullish stance.
Conclusion: A New Monetary Era
The U.S.’s pro-crypto position marks a bold step towards cementing its role as a digital asset leader whilst safeguarding the dollar’s global standing. With Bitcoin’s market cap hitting £1.7 trillion in March 2025, the Crypto Reserve could mirror the Petrodollar’s historic impact, tying digital value to U.S. economic influence. Europe fears that decentralisation threatens its historic control. Crypto could weaken banks’ ability to mediate the debt of large economies in Europe, unravelling the Eurozone’s tightly knit financial system and eroding the Euro’s strength. Europe’s resistance and BRICS’ recalibration underscore the U.S.’s lead, potentially curbing global debt appetites as decentralised finance gains traction.