Turbulent Times: The Case for Cryptocurrency in a Volatile Global Economy
The global economy is currently in a whirlwind, characterized by rapid shifts in US policies that seem to change from day to day—or even hour to hour. Amidst escalating tensions, major economies are feeling the effects of new tariffs imposed by the United States. For instance, India faces a whopping 25% tariff, while Canada is grappling with an even steeper 35% on imports. These developments, particularly involving longstanding allies, raise significant questions about the efficiency and reliability of international financial systems.
The Push for Efficient Payment Solutions
In light of these challenges, there’s an increasing movement toward creating facilities for international payments that can streamline processes or circumvent traditional methods, particularly through the use of cryptocurrencies. This shift is particularly relevant as the economy grapples with wars, tariffs, climate change, and other global pressures. Cryptocurrencies may not merely be a speculative trend but could evolve into crucial tools for digital commerce, paving the way for more cohesive regulation of the previously opaque industry.
Major Players Enter the Scene
Recently, two significant global financial institutions, PayPal and JP Morgan, announced new capabilities that allow consumers to use cryptocurrency for payments and transactions. PayPal’s “Pay with Crypto” initiative, led by Alex Chriss, its CEO, highlights the dire need for businesses to adapt to the complexities of international payments. Chriss articulately pointed out that businesses of all sizes face immense pressure as they go global, dealing with rising costs and intricate integrations. For instance, imagine a buyer in Guatemala purchasing a unique item from a merchant in Oklahoma City—PayPal’s platform enables such a transaction to occur with reduced costs and complex integrations.
The following day, JP Morgan unveiled its partnership with Coinbase, enabling customers to fund their wallets using Chase credit cards and buy cryptocurrency on the exchange starting in fall 2025. In a significant move, Chase card users will also have the option to redeem points using USDC, a stablecoin designed to mitigate market volatility—a favorable choice for large financial institutions venturing into the crypto arena.
Visionaries of the Crypto Realm
Joselito Lizarondo, a fintech entrepreneur from the Philippines and the founder of Swipe.io, provides a unique perspective on these industry shifts. His platform enabled the real-time spending of stablecoins through crypto debit cards, highlighting the usability of crypto in everyday transactions. Lizarondo’s experience, particularly in navigating a challenging crypto bear market, culminated in a successful exit when he sold his company to Binance.
According to Lizarondo, PayPal and JP Morgan’s announcements affirm the long-standing vision of making cryptocurrencies practical for everyday use. He emphasizes that stablecoins can effectively address the volatility issues that have kept broader adoption at bay, offering a secure on-ramp into digital payments for traditional institutions.
The Foundation of Modern Financial Transactions
As Lizarondo notes, this pivotal moment leans less toward speculative trading and more toward the foundational infrastructure of cryptocurrency that seeks to assist businesses and consumers. With the vagaries of the current economy—including tariffs, inflation, and rising cross-border costs—cryptocurrency’s role as a facilitator for seamless transactions becomes increasingly crucial.
Additionally, Lizarondo points out that the involvement of major financial players can significantly reduce friction for both consumers and merchants. This frictionless interaction is essential for accelerating regulatory clarity, which is key to unlocking cryptocurrency’s potential in cross-border commerce.
Global Economic Headwinds
Currently, global businesses are grappling with considerable uncertainty driven largely by US-imposed tariffs affecting various countries indiscriminately. While some nations, like Mexico and the UK, seem to have sidestepped additional tariffs, the overall trade landscape remains complicated. The challenges posed by the US Congress’s OBBBA legislation, which has added taxes on standard payments like remittances valued at nearly $800 billion, further complicate the situation.
Moreover, national security concerns and the push for domestic economic resilience are prompting many nations to impose more stringent trade restrictions. Companies are increasingly being urged to “reshore” or “friendshore,” creating additional regulatory hurdles for international corporate partnerships.
The Path Ahead for Cryptocurrency
Amidst such complex dynamics, cryptocurrency still struggles with its reputation as an unregulated and often-misunderstood alternative currency. Yet, the vision of a future where crypto can democratize access to financial systems and streamline cross-border payments appears increasingly attainable. This vision can only be realized if regulatory frameworks are established and if global financial institutions actively seek pathways for cryptocurrency to thrive.
Clearly, with the recent moves by JP Morgan and PayPal, the urgency of the international payments issue is recognized. The probing questions around the use of cryptocurrency in this rapidly changing landscape may foreshadow the inevitable regulatory advancements that will serve to legitimize and facilitate its growth.
