Tariffs, capital controls could fragment blockchain networks
Escalating geopolitical tensions are threatening to fragment blockchain networks and limit user access, according to crypto executives. Concerns arose following President Donald Trump's announcement of a pause on certain tariffs, with apprehensions about a potential global trade war, particularly regarding a proposed 125% levy on Chinese imports. Executives noted that aggressive tariffs could hinder node operators and validators essential for blockchain functioning. The Bitcoin network is particularly vulnerable due to its reliance on specialized hardware, such as ASIC chips, which could face supply chain disruptions from tariffs. Furthermore, if global trade deteriorates and capital controls are enforced, acquiring Bitcoin may become more difficult for individuals in restrictive regions, complicating access to exchanges. Despite these fears, the rise in tensions may also highlight the resilience and value of cryptocurrencies on a global stage, according to industry experts.
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