Nora Al -Faihani
There is no doubt that the economy of the economy is currently witnessing radical transformations imposed by technical developments and political changes, as it has become clear that relying on traditional financial systems suffers from increasing challenges related to flexibility, transparency, and control, and in light of this scene, coded currencies emerge as one of the most prominent phenomena that may redraw the features of the global financial system.
The industry is intertwined with financial trading directly, and this is translated by news about the intention of Tesla Company to integrate an audio system in its cars, which depends on Chinese models, which are “Deep Cick” and “Doba”, in a move aimed at keeping pace with competition in the Chinese market that is rapidly growing in financial technology solutions.
At the same time, economic tensions are escalating due to the policies pursued by US President Donald Trump, under the pretext of protecting the American economy or imposing its dominance on the global financial system, but these policies, instead of achieving their goals, have eroded confidence in the monetary system that depends on the dollar, and prompted many countries to search for alternatives that reduce their dependence on the American currency, including developing alternative payment systems, and using encrypted currencies in Commercial operations.
While China, the European Union and Russia are heading to strengthen its capabilities in the field of national digital currencies, to counter Trump’s sanctions, we find Europe to develop a regulatory framework that keeps pace with technological innovations, and to take protective measures against Trump’s fees that may lead to cooperation with countries that did not want to expand economic relations with them, such as China and Russia.
The situation is not different with manufacturing and production, as Trump seeks to force multinational companies to localize its industries in America, but global supply chains may fail the US President’s endeavor to achieve his dream. For example, the manufacture of electronic chips and similarities is dependent on complex supply chains in a way that makes it difficult to completely localize these industries, where the components of production are distributed through multiple continents, including America Taiwan and South Korea, the Netherlands manufacture equipment while assembly is carried out in East Asian countries.
This overlap leads to fragility in the global system, especially when imposing sanctions on countries such as China, to return a direct impact on the American industrial sector, and the repercussions of this appear in the short and long term.
In light of the insistence on the escalation, the global financial system may witness radical transformations, one of which is the most prominent of which is the increasing use of cryptocurrencies as a means of payments, with the aim of liberating from American domination, and strengthening the balance of international powers with other tools, as the digital market now provides more flexibility and transparency than the US dollar, and countries and individuals alike enable both financial operations to quickly and safely, away from the restrictions of the traditional system.
Ultimately, the world appears to be approaching a new stage of financial interaction, characterized by a complex formula of challenges and opportunities. As the success or failure of these transformations depends largely on the extent of governments and institutions’ ability to organize the sector, enhance confidence in digital currencies, while maintaining the stability of the global financial system, and achieving a balance between caution and innovation.
