America Can Be a Blockchain Powerhouse – Here’s How

Competition has always been a major catalyst that has resulted in the rise and fall of civilizations.

Throughout history, the societies that came out on top were the ones with an edge — whether it was having a stronger military, visionary politicians, a higher abundance of resources, or simply better access to trade routes, these advantages made all the difference.

Take the space race as one example. The U.S. and the Soviets weren’t just launching rockets for the sake of it; they were fighting for dominance and national pride, a high-stakes game showcasing who had the better intellectual superiority and technological prowess.

Then there was the arms race, probably the most intense and consequential game of one-upmanship in human history. The nation with the biggest arsenal wasn’t just flexing; they were shaping the outcome of wars and the world that came after. America’s military power during the post-war years and the Cold War laid the groundwork for the world we live in today.

We are in the midst of a Blockchain arms race, a critical battlefield that is primed to reshape the future and upset the status quo of nations and their current financial and economic positions of power.

This revolution will result in control over the next generation of financial systems and economic supremacy.

Table of Contents Table of Contents

1. Key Takeaways
2. Understanding the Blockchain Space Race
3. America's Importance in the Blockchain Industry
4. Blockchain Rises in the East
5. How Blockchain Impacts High Geopolitical Stakes
6. How America Can Retain Its Edge
7. The Bottom Line
8. References

Show Full Guide

Table of Contents

1. Key Takeaways
2. Understanding the Blockchain Space Race
3. America's Importance in the Blockchain Industry
Show Full Guide
4. Blockchain Rises in the East
5. How Blockchain Impacts High Geopolitical Stakes
6. How America Can Retain Its Edge
7. The Bottom Line
8. References

Understanding the Blockchain Space Race

Today, America enjoys a dominant position in the global financial and technological industries, partly due to being the largest crediting nation during the great wars and their bold powerplay move for economic superiority in 1944 with the Bretton Woods Conference.

When it comes to technology, America has capitalized more effectively than any other nation from the dot-com boom and the early days of the internet, with Silicon Valley leading the technological race that has defined this century.

While the United States has done exceptionally well and is no stranger to competition and embracing innovation, it now finds itself at another crossroads, an arms race for digital superiority with higher financial stakes on the line, and the odds are not in its favor.

Technology and geopolitics intersected with startling velocity in the digital age spanning the past 45 years. Along with space supremacy, armament supremacy, and, more recently, the race for technological superiority and semiconductor chip dominance, we witness a blockchain race unfolding as we live and breathe today.

This battle for blockchain dominance has been at the forefront of global attention, with central banks and governments worldwide understanding the importance of being a leader in this next stage of technological evolution.

According to Reuters, 130 countries representing 98% of the global economy are now exploring digital currencies. This race has been unfolding on a global scale, the likes of which we have never seen. And unlike the historical vying for dominance, a privilege held by a few superpower nations, today’s push for blockchain domination is being undertaken by some unlikely contenders.

Countries from the wealthy G20 are competing alongside nations that have historically sat on the sidelines and watched as the world was shaped by a select few, showing us just how high of a priority this next iteration of the internet and finance truly is.

The blockchain race is exemplified by the intense battle between Western heavyweights like the U.S. and Europe squaring off against Eastern powerhouses like China, India, the UAE, and other rising tech leaders, all vying to take the lead in the evolving world of blockchain technology.

This technology, best known as the backbone of cryptocurrencies like Bitcoin and Ethereum, is about more than just digital currencies. It promises an evolution in how we transact, secure data, verify authenticity, and establish trust in a digital world. The stakes are high, and the leaders stand to gain a significant edge in economic and technological leadership on the global stage.

Blockchain technology is positioned to revolutionize everything from finance and supply chains to healthcare, gaming, education, and more. Essentially, every industry that utilizes the internet today has a strong likelihood of being disrupted by this emerging technology in the coming years. Blockchain technology is the foundation for the Fourth Industrial Revolution, which aims to support a more transparent, efficient, and secure global economic system.

Countries that take a leading stance won’t only benefit economically but sway global macroeconomic trends, shaping digital economics around the world for decades to come.

This rapidly evolving technology isn’t just about new ways to transact; it marks a fundamental change in how we view finance, ownership, data privacy, operations, logistics, and control.

In the East, digital currencies are often seen as tools to bypass traditional Western-centric financial systems, carving out dominance in a new economic model and as a way of escaping inflated and failing national currencies.

Meanwhile, in the West, they’re viewed with a mix of caution and ambition, seen as investible assets by some, a challenge to the existing monetary order by others, and a chance to maintain economic supremacy by some holding positions of power.

America’s Importance in the Blockchain Industry

The United States finds itself at a crossroads, lagging behind other nations due to cautious hesitation (some claim cronyism via “Operation Choke Point 2.0”) under previous democratic leadership. The U.S., as the largest economic powerhouse in the world, has the most to lose in this global technological and economic game of chess — a misstep here could be catastrophic. Yet, inaction is also an action that could cost the nation dearly if it fails to capitalize on this opportunity.

Under previous leadership, the United States has been criticized for failing to set clear guidelines and regulations for this budding industry, and worse, for actively suffocating innovation by regulating by enforcement and showing extreme hostility against companies aiming to build the platforms of the future, which forced innovative companies offshore in search of friendlier jurisdictions.

Electric Capital released a report highlighting that blockchain developers are leaving the United States at a rate of 2% per year.

In 2017, 40% of blockchain developers were located in the United States, a figure that has dropped to just 29% in 2023 as crypto entrepreneurs set up businesses offshore.

As the largest benefactor of the 2000s tech boom, America knows better than most the value of embracing innovation. That’s why their hesitant, even hostile stance toward digital advancements is leaving industry leaders frustrated and perplexed. This short-sighted approach has placed the nation’s once-dominant global position at serious risk. History shows that countries that were slow to adapt to the internet revolution paid the price. Now, America faces the same peril if it doesn’t change course.

America’s role in this race is marked by both significant potential and a set of complex challenges. On one side, the U.S. has a strong technological backbone, a culture that thrives on innovation, and a dynamic ecosystem filled with startups and tech giants pushing limits. This makes the country a serious contender for leading the blockchain revolution.

Tech hubs like Silicon Valley and Boston’s Route 128 are filled with visionaries shaping blockchain’s future. Additionally, America’s solid intellectual property laws and global financial influence create an environment ripe for blockchain growth and integration within the current economic framework.

Pro-blockchain politicians like House Majority Whip Tom Emmer, Representative Ritchie Torres, Senators Ted Cruz, Kirsten Gillibrand, Cynthia Lummis, and recently elected President Donald Trump recognize these dynamics well. They’ve openly voiced their frustration over America’s failure to adequately support blockchain innovation, seeing it as a missed opportunity that could undermine the nation’s tech leadership.

The most notable example of this shifting of the political stance in the country is Donald Trump’s pro-crypto position, claiming himself as the first “Crypto President.”

Bitcoin’s price broke previous all-time highs as Trump’s announcements at the Bitcoin conference stand to position America, once again, as a leader in emerging technology.

Among his promises, Trump declared that:

A plan for a Strategic Bitcoin Reserve was introduced by Senator Cynthia Lummis and then later endorsed by Trump at the conference. This would involve the U.S. adding Bitcoin to its reserves, solidifying it as a global reserve asset. Trump pledged to maintain the current level of Bitcoin holdings that the U.S. has amassed from seizing assets from financial criminals.

Trump declared, “If crypto is going to define the future, I want it to be mined, minted, and made in the USA.” He met with top U.S. Bitcoin mining executives, emphasizing the need for a supportive regulatory framework as miners compete for power with industries like AI data centers.

Trump also promised to fire SEC Chairman Gary Gensler, aiming to shift the SEC’s stance on crypto. While Trump does not have the power to directly fire the SEC chair, Gensler has already announced his resignation, highlighting a hopeful shift in regulatory sentiment.

Trump took to Truth Social, blasting Biden’s stance on Bitcoin: “Biden’s hatred of Bitcoin only helps China, Russia, and the Radical Communist Left. We want all the remaining Bitcoin to be made in the USA!” He’s since repeated this message while in Nashville at the Bitcoin conference.

The United States is one of the largest Bitcoin holders in the world, holding approximately 213,297 Bitcoin. according to CoinGecko. This equates to 2.2% of the total Bitcoin supply.

America amassed this wealth primarily through seizures and criminal investigations of Silk Road users in Bitcoin’s early days.

Suppose Bitcoin becomes a global reserve asset and continues its price appreciation, the USA will be well positioned, which is why Trump announced that he would not allow the U.S. government to sell its Bitcoin holdings like Germany did in 2024.

Trump recognizes America’s potential to be a leader in blockchain innovation, an initiative that was stifled by the previous administration and even multiple currently appointed politicians such as Senator Elizabeth Warren and her “anti-crypto army” campaign, which states that cryptocurrencies pose more of a risk to U.S. dominance and it’s citizens than the nation stands to benefit through adoption.

It is unclear if anti-crypto politicians are operating with genuine integrity and concern for public safety or if it is a way of retaining control, as the decentralized nature of blockchain is a stark contrast to the centralized systems of power and control that have traditionally underpinned America’s political institutions.

America’s approach to this industry is under curious observation and intense scrutiny globally, as balancing innovation with regulation requires a carefully executed strategy.

Europe Leads the West

America doesn’t just face competition from the East. Long-time allies in the European Union are keen to take advantage of America’s mistake and have stepped up as leaders in digital innovation. While U.S. lawmakers are undecided on which agency should regulate crypto and attempt to use the outdated 78-year-old Howey Test to decide what is a security and what is a commodity, Europe has already moved ahead, becoming the first major global power to implement a comprehensive crypto regulation framework with MiCA (Markets in Crypto-Assets).

The approval of MiCA was a clarion call, a boisterous signal to other nations that Europe is positioning itself as the leader in balanced, forward-thinking blockchain regulation.

Across the English Channel, the United Kingdom is charting its own course in the blockchain world. Since Brexit, the UK has been on a mission to reshape its economic identity, and the country’s embrace of blockchain has been swift, outpacing America in many areas of adoption.

The UK is ahead of the States in establishing a clear regulatory framework that balances security and consumer protection, including initiatives like the Financial Conduct Authority’s sandbox for testing blockchain applications.

The UK Government has been funding research and development in universities through the UK Research and Innovation Organization (UKRI), advancing new and existing blockchain technologies, while public-private partnerships foster collaboration between industry leaders, academics, and policymakers.

The UK appears to be seeking to capitalize on America’s cautious and fragmented stance. While the U.S. gets caught up in regulatory debates and turf wars between agencies, the UK is focused on solidifying its role as a global leader in both financial and blockchain adoption.

Blockchain Rises in the East

Eastern nations, especially China, have been making bold and controversial moves in blockchain, cementing their spot as serious global competitors. In the U.S., Central Bank Digital Currencies (CBDCs) have sparked heated debate, with figures like Tom Emmer, Florida Governor Ron DeSantis, Robert F. Kennedy Jr., Vivek Ramaswamy, and Warren Davidson leading the charge against them, even pushing for outright bans, with Donald Trump supporting the initiative to ban CBDCs.

China was the first nation to implement a CBDC strategy on a grand scale with the issuance of the Digital Yuan. China’s Communist Party and governmental structure allowed them to be the first major issuer as they did not need to contend with the democratic process followed in the West.

China has been taking a strategic, tech-driven approach to align national goals, rivaling giants like Amazon and Microsoft through its ambitious Blockchain Service Network (BSN). This nationwide project aims to create a unified digital infrastructure to accelerate innovation and integrate blockchain into the mainstream economy. The level of state-backed commitment underscores just how serious and advanced the nation’s push into the blockchain space is.

Countries like South Korea, Japan, Singapore, and India are stepping up as major players in the blockchain space as well, each with its own unique approach. South Korea is pouring resources into creating a blockchain-powered smart city, while Japan’s balanced regulatory framework has cultivated a thriving scene for crypto.

Singapore is capitalizing on its status as a financial hub to lead in FinTech and supply chain blockchain applications, while India is using blockchain to boost governance and drive sectors forward through its “IndiaChain” initiative. These varied approaches — from smart regulation to ambitious projects — showcase their view of blockchain as a key driver for economic growth. It’s a strategic play in the global digital economy, positioning them as major influencers shaping the future economic landscape.

Perhaps the most extreme example of a crypto-friendly nation is the United Arab Emirates. The UAE has established itself as a global hub for digital asset innovation. With its progressive regulatory stance and strategic investments, the country has created a fertile environment for crypto businesses and blockchain tech to thrive.

Ranked high on the list of countries leading in crypto adoption, the UAE’s rapid growth is fueled by supportive regulations, strong institutional interest, and a surge in market activity. Between July 2023 and June 2024, the UAE processed over $30 billion in crypto transactions, placing it among the world’s top 40 nations and making it the third-largest crypto economy in the MENA region.

The country’s proactive approach was highlighted by its recent decision to exempt virtual assets and investment fund management from value-added tax. Coupled with its low-tax environment and thriving startup scene, the UAE has become an attractive destination for crypto businesses and investors. As someone who frequently visits Dubai, I can tell you that the cities are full of U.S. citizens who moved there to set up crypto companies in the crypto-friendly nation.

This is to the direct detriment of the United States as this economic activity has been siphoned away from U.S. soil.

Eastern strategies also appear to reflect a desire for technological and financial sovereignty and independence, playing a more significant role in setting global standards for digital currencies. Utilizing these technologies helps these countries reduce their dependence on Western-dominated financial systems.

Many nations to this day still suffer economically from failing to capitalize on the initial industrial revolution that benefitted the West and are now taking early calculated steps to ensure they will not miss out on the next digital revolution that will be defined by blockchain technology.

How Blockchain Impacts High Geopolitical Stakes

How America Can Retain Its Edge

As the world edges into a new era of technological breakthroughs, America faces both hurdles and opportunities. For the U.S. to maintain its dominance, leaders need to focus on strategic vision, forward-thinking policies, and building strong global alliances. Balancing power, technology, and policy will require a clear and actionable plan, one that embraces innovation, encourages collaboration, and establishes a regulatory framework built for the future.

Here’s what it will take for America to lead during this period of financial and technological revolution.

America must promote its spirit of competitiveness and its desire to innovate, replicating the determination its society expressed when it led the competition during the days of the Industrial Revolution, the post-war era, space exploration, and the dot-com boom. The United States seems to have become complacent in its privileged position of technological and financial dominance and is not taking the emerging competition seriously.

This means increasing resources into research and development, offering meaningful incentives to startups, and rolling out education programs that build a highly skilled workforce. By giving entrepreneurs and innovators the tools and support they need and implementing incentives, the U.S. could stop the exodus of blockchain builders and keep innovation on home soil.

Innovation thrives best when supported by a framework that fuels growth and lowers hurdles. The U.S. government has a key responsibility in developing and approving policies such as FIT21 that strike a balance between smart regulation and fostering innovation.

US policymakers need to do more in creating clear guidelines for blockchain use, tackling issues like privacy and security, and creating standards that ensure fair competition.

A regulatory approach that’s adaptable and supportive will help position America as a global leader in blockchain adoption, drawing in top talent and investment from across the globe.

In today’s interconnected technological landscape, no country can afford isolationism. For the U.S. to stay ahead, it needs to actively build and strengthen partnerships with other nations, industries, and international organizations, with a focus on deepening relationships with current allies.

These alliances are fundamental for sharing expertise, aligning standards, and creating a global environment where innovation and advancements can thrive. By taking the lead in international discussions and collaboration, America can help shape blockchain’s growth in a way that drives global economic progress and stability for all parties involved.

The Bottom Line

American policymakers have come under heavy criticism for creating a hostile regulatory environment that has taken a toll on the country’s economy. This approach has stifled innovation, hindered GDP growth, driven up unemployment, and deepened economic stagnation. It has also weakened America’s global competitiveness and, ultimately, placed America in a situation where it is now forced to play catch up in this emerging technological race.

To maintain its economic, financial, and technological leadership, the U.S. needs to develop a comprehensive strategy and stop falling behind, one that nurtures domestic innovation, establishes forward-thinking policies, and strengthens global alliances. This approach must be carried out through coordinated efforts that align the government, private sector, and international partners.

Politicians looking to hinder or dismiss this technology should seek to understand the stakes and benefits of adoption. While there are risks, the smarter move is to adopt technology with a clear vision and solid strategy rather than sitting back and letting other nations, whether allies or rivals, reap the rewards. Shutting down innovation simply pushes opportunities and economic benefits offshore, ultimately hurting the economy and the citizens they are meant to serve.

With the recent change in office and appointment of key stakeholders in positions of power, America has the potential to not only lead the blockchain race but also set the stage for a future where technology is the cornerstone of economic growth and global collaboration.

To do so, it must develop and adopt a cohesive regulatory framework. The lessons learned from Europe and the East are clear: true leadership in blockchain requires more than technological advancement; it’s about having the foresight to create a vision, regulate effectively, and build an environment where innovation can flourish.

The world has shown that it is not going to wait around for the U.S. to get its act together. Rivals and allies are pushing forth in this new digital frontier with or without them.