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As former U.S. President Donald Trump ramps up his rhetoric around renewed tariff policies, Binance CEO Richard Teng believes the fallout could accelerate global interest in cryptocurrencies.
Speaking at a recent fintech conference, Teng pointed to rising geopolitical and economic uncertainty—particularly the potential for tariffs to disrupt markets and devalue fiat currencies—as a catalyst for increased adoption of digital assets.
“When traditional systems become unstable or protectionist policies start to dominate, people look for alternatives,” Teng said. “Crypto provides a hedge, a borderless, decentralized financial option in times of global strain.”
Trump’s Tariff Playbook and Its Ripple Effects
Trump has recently floated the idea of imposing sweeping tariffs if reelected, including a 10% universal tariff on all imports and potentially much steeper levies on Chinese goods. These proposals have reignited concerns among economists about inflation, trade retaliation, and slowed economic growth—all of which could roil traditional markets.
According to Teng, such policies—especially if implemented without global coordination—could lead to capital flight from vulnerable currencies and increased appeal for decentralized stores of value like Bitcoin.
Crypto as a Hedge Against Policy Risk?
The Binance CEO’s comments reflect a broader trend in the crypto narrative: positioning digital assets not just as speculative plays, but as hedges against systemic risk, monetary policy shifts, and trade imbalances.
“We’ve seen it before—when confidence in fiat systems erodes, people turn to crypto,” Teng said, referencing past spikes in crypto activity during currency crises and political unrest in regions like Turkey, Argentina, and Lebanon.
Institutional Investors Taking Notice
With Bitcoin and other digital assets now more accessible via ETFs and regulated platforms, institutional investors may also respond to tariff-induced uncertainty by diversifying into crypto. While volatility remains a concern, the long-term thesis around crypto as “digital gold” is gaining traction.
Teng emphasized that while tariffs may be politically popular in the short term, their unintended consequences could push more people toward crypto as a safeguard.
“Crypto thrives when people want financial freedom and control,” Teng noted. “If we enter another era of protectionism and economic tension, don’t be surprised if we see another wave of adoption.”
As the U.S. election heats up and macroeconomic policies take center stage, digital assets may once again find themselves in the global spotlight—not just as an investment, but as a statement.
