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As the United States gears up for its presidential election in three weeks, the world watches closely.
Could the outcome of this election have significant implications for the cryptocurrency landscape across the African continent? In this article, we take a look at the stances each leading candidate has taken to crypto and potential impacts of the stance taken by the new administration that will be elected in just 3 weeks time.
How could the outcome of the upcoming US election shape the future of cryptocurrency regulations in Africa? Both major candidates come with their differing stances on crypto, so understanding what each of them has had to say about cryptocurrencies can give us an idea of what the future could hold in the crypto sphere on a global level.
What do we know?
Republican nominee Donald Trump has expressed a desire to make America “the crypto capital of the world,” while in contrast, Democrat Kamala Harris has been relatively quiet on the issue, not revealing too much about her thoughts on cryptocurrencies. Each candidate’s stance on cryptocurrency could have different implications for the industry, both in the US and globally. So let’s have a look at what each has said and done in the past.
Donald Trump
Donald Trump has made a significant shift in his stance on cryptocurrency. Initially, he was skeptical and even called Bitcoin a “scam.” However, he has since embraced the crypto industry, aiming to make America “the crypto capital of the world” – in a show of his belief in the future of cryptocurrencies, he has even launched his own crypto coin and has been actively engaging with the crypto community. During his campaign, he has also accepted cryptocurrency donations.
Trump’s pro-crypto stance is seen as favourable for the industry, with potential for positive regulatory changes.
Kamala Harris
Kamala Harris has been relatively quiet on the issue of cryptocurrency compared to Trump. However, she has shown a pro-digital assets stance, particularly in terms of innovation and financial inclusion. Harris has called for a regulatory framework to protect American crypto holders and has expressed appreciation for the ways new technologies can broaden access to banking and financial services.
While Harris may not be as aggressively supportive as Trump, her stance is seen as more favourable than Biden’s.
During the current administration as Vice President to Biden, there has been a cautious approach to cryptocurrencies, focused on ensuring responsible development of digital assets. This was largely an emphasis on consumer protection, financial stability and addressing climate risks. For example, Biden signed an executive order calling on the government to examine the risks and benefits of cryptocurrencies. While his stance was not as supportive as Trump’s or Harris’s, it aimed to balance innovation with regulatory oversight.
Summary
- Trump: Pro-crypto, aiming to make the US a leader in the crypto industry.
- Harris: Supportive of digital assets, focusing on innovation and financial inclusion.
- Biden: Cautious, emphasizing responsible development and regulatory oversight.
Potential Impact on African Nations: Crypto Regulations and Policies
Several African countries, such as Nigeria, South Africa, Kenya, Ghana, and Uganda, have been at the forefront of crypto adoption and regulation. The regulatory landscape in these countries varies greatly, with some embracing cryptocurrencies more openly than others. While this shows African independence of the regulatory frameworks coming out of the US, we should still consider ways in which the US election could impact African nations:
- Market Sentiment: The outcome of the US election could affect global market sentiment towards cryptocurrencies. A “pro-crypto” US administration might boost investor confidence, leading to increased adoption and investment in African nations. On the other side of this, an administration that is less crypto-friendly could potentially have the opposite effect.
- Regulatory Influence: US regulatory policies often set a precedent for other countries. If the US adopts a more crypto-friendly stance, it could encourage African regulators to follow suit, fostering a more supportive environment for crypto innovation. Likewise, a hostile attitude to crypto could affect global sentiment and make big leaps forward in the African crypto space less likely.
- Investment Flows: A favourable US regulatory environment could attract more institutional investors to the crypto space. This influx of capital could benefit African crypto projects and startups, providing them with the necessary funding to grow and expand. If it is less favourable to crypto, this would obviously impact the likelihood of such capital becoming available through the crypto sphere.
Looking Positive
Based on what each has said, the odds are we will see a crypto-friendly administration in the Whitehouse very soon, and the impact of this on African crypto markets could be significant in a lot of positive ways. It could really boost investment and trust in the markets, improve access to finance and encourage more government and private spending on much needed infrastructure to improve access to internet and technology. These are so important to continued development and generation of opportunities across African nations.
Improved financial and cryptocurrency understanding is key to our advancement in the global digital revolution, and a more cryptocurrency positive environment will only serve to speed up the process of educating and improving the opportunities for people all across the continent.
A less friendly crypto stance from the US administration on the other hand would not produce these outcomes, but could instead inspire stricter regulations and restrictions on crypto in some African nations. However, the US is not the only voice in the global market, and even a less crypto-friendly stance is not likely to stop the momentum that has already built up.
A Force Too Great To Stop
The rapid growth in cryptocurrency adoption in African countries shows there is a huge market and interest in the crypto space, and this is not showing signs of stopping. The unique opportunity this presents for innovation and financial inclusion in turn continues to drive digital transformation and infrastructure improvements in nations all over the continent.
The upcoming US election holds the potential to give a real boost to the world of cryptocurrency in Africa. As the world watches the election unfold, the audience in Africa should stay informed and be prepared to seize the opportunities that may arise. Keep up to date with ACCN.