The financial system in transformation – antiglobalism and blockchain may become the foundation of a new model for the global economy, in response to political and economic uncertainty and dependence.
The Dismantling of Globalism Is Unfolding Before Our Eyes – and What Do the Fed Do With It?
Let’s go back a bit to see the broader dynamics. In 2019, we saw the U.S. Federal Reserve begin to cut interest rates – not because it wanted to, but because it was forced to.
At that time, the credit markets “froze.” This forced the Fed to urgently lower rates, even though they continued to state that they wanted to keep rates at a normal level at least through 2020.
Today, credit markets are once again showing signs of distress – and quite visibly. For instance, Moody’s has even downgraded the credit rating of U.S. Treasury bonds.
Even more notably, for the first time in history, all three major credit rating agencies, S&P, Fitch, and Moody’s, have downgraded the U.S. rating.
Looking at historical patterns, these are typically the moments when assets that serve as alternatives to bonds, such as gold, perform quite well, as they did in 2019.
This was a trigger for a dramatic surge, followed by the COVID-19 pandemic, which forced them to abruptly cut rates to near zero.
And note how timely BlackRock entered the picture, providing a report that looked almost like a manual for the Fed, including more aggressive approaches than the Fed had typically pursued – such as printing money, injecting it into the markets, and pumping reserves into the banking sector, calling it a “direct reset.” Thus, it can be said that BlackRock and the U.S. Federal Reserve worked together to rescue one another – using taxpayer money.
Likewise, the price of Bitcoin, as seen on this chart, shows a strong correlation with inflows into spot Bitcoin ETFs, most of which are controlled by BlackRock. They continue to exert significant influence over the markets, including crypto, and therefore over its future. Moreover, they are expected to continue expanding and strengthening their control through Bitcoin accumulation and expansion into new jurisdictions.
How Is All of This Connected to Donald Trump and Deglobalization?
Well, the answer becomes fairly clear when we again take a step back. The entire situation described above is only possible under globalization and its institutional framework – and Trump, it seems, is actively trying to dismantle what took 50 years of gradual, meticulous effort to build.
And this is not just about imposing tariffs in place of tariff-free global trade – but rather about opposing the very idea of global competition. Of course, this has drawn criticism, painting Trump as the initiator of globalism’s dismantling, but that would not be entirely fair. It’s important to account for objective processes that themselves pose a threat to globalization – such as the Triffin dilemma.
The essence of this dilemma highlights the conflict of interest between global and domestic economic priorities. For the global economy, maintaining international trade and finance requires the issuer of the reserve currency to inject large volumes of its own currency into the global system, which inevitably leads to a trade deficit and the weakening of domestic industry. However, a persistent deficit undermines trust in the currency, and investors begin to question its stability and the issuing country’s ability to maintain its value.
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So What Comes After Globalism – and Why Is It Fundamentally Important?
First and foremost, it’s crucial to understand that antiglobalism is not only about economics but also about politics, foreign influence, wars, military invasions, territorial occupations, and more.
There may not yet be a stable term for this in today’s discourse, but we have seen some early signs, namely, the trend toward protectionism and political and economic sovereignty. This can be observed in the de-dollarization initiatives by Europe, China, and Russia, and in their pursuit of more sovereign and independent solutions.
And this seems to be a moment where both the technological tools and the corresponding interests have matured. Today, we are witnessing the rapid development of artificial intelligence, opening the way for unprecedented automation and robotics and enabling more closed-loop production cycles within key economies. Simultaneously, we have decentralized finance, which enables the restructuring of asset exchange using smart contracts – without the need for blind trust or systemic manipulation.
For example, the European Securities and Markets Authority has launched a pilot program for distributed ledger technology. The company 21X is the first in Europe to gain access to this pilot and has created a market for tokenized securities and other tokenized capital. Another company, Dusk, later joined, focusing on the tokenization of real-world assets – i.e., one company will issue them, and the other will operate the trading platform. Notably, this market is based on the public Polygon blockchain – a Layer 2 solution for Ethereum.
However, there’s an issue: On one hand, Europe needs an open and public system so that all general payments can be more transparent and controllable, which explains the consistent push toward developing a digital euro.
On the other hand, Europe also needs a closed and private blockchain for critically sensitive transactions, such as those in the defense industry, corporate payments, and beyond – which means Ethereum itself and similar platforms won’t suffice. This is where Ethereum or not Ethereum L2 solutions have to offer private and confidential transaction data may come into play.
Thus, we may potentially arrive at something resembling what we’ve seen in movies like Blade Runner – where states and tech corporations merge into a unified entity, focused inward on domestic production, trade, and accumulation, all powered by decentralized technologies.
Conclusion
It appears that more and more strategic trends are converging at a single point, and that point is becoming increasingly clear. Artificial intelligence and, as a result, automation and robotics in production, with decentralization in trade – increasingly appear to be an inevitable future. And cryptocurrencies and tokenized assets will likely play a key role.
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