- Cryptocurrency has become a partisan issue in the United States, with a former Coinbase executive explaining why it appeals to certain demographics.
- According to Balaji Srinivasan, digital assets are favored by “American conservatives” and “Chinese Liberals”, groups not typically represented by the Democratic party.
- The entrepreneur argues that “Democrats and Communists control powerful states, so they don’t benefit from crypto,” but everyone else does.
Explore how cryptocurrency has become a partisan issue in the US, with insights from former Coinbase executive Balaji Srinivasan. Discover why digital assets appeal to certain demographics and how this impacts the political landscape.
Crypto: A Tool for the Underrepresented?
In a recent tweet, Srinivasan stated that cryptocurrency is for “small countries and dispossessed minorities,” offering a new form of power to those who lack state influence. He pointed out that employees of top US employers, including Microsoft, Amazon, Google, and the government, primarily donate to Democrats over Republicans. Furthermore, the wealthiest US counties, which generate most of the nation’s GDP, are blue counties, indicating that Democrats have the most money.
Crypto’s Position in the Political Spectrum
Srinivasan added that “Crypto is to the right of American Democrats and the left of Chinese Communists.” He depicted the current governments of both China and Russia as “culturally right” and the current US establishment as “culturally left.” Both factions have shown hostility towards the crypto industry. Eastern superpowers have banned crypto as a payment method for citizens, citing potential economic instability. Meanwhile, the Biden administration has consistently opposed pro-crypto legislation. Last week, the White House pledged to veto a Republican-led resolution to cancel SEC guidance preventing banks from offering crypto custody services.
Embracing Crypto’s Political Nature
Srinivasan’s post was a response to Castle Island Ventures partner Nic Carter, who dismissed the idea that crypto is not inherently political. Carter argued that “to the extent leftism relies on the politicization of finance, crypto will be a rightist technology, definitionally.” He also noted that left-leaning Democrats could see appeal in crypto. For instance, allowing banks to custody crypto could bring the industry into the regulated fold, and stablecoins could increase demand for US government debt.
Conclusion
The political nature of cryptocurrency is becoming more apparent, with the digital assets appealing to certain demographics more than others. As the industry continues to evolve, it will be interesting to see how this dynamic impacts the political landscape and the future of crypto regulation.
