Escalating commerce wars are rattling cryptocurrency markets — however they’re additionally creating new use circumstances for blockchain networks, Truebit executives advised Cointelegraph.
On April 2, President Donald Trump introduced plans to cost sweeping tariffs on US imports, prompting different nations to threaten retaliatory measures. Trump later paused the tariff rollout for sure international locations — however the potential for a worldwide commerce conflict nonetheless looms, particularly after Trump reiterated his dedication to taxing Chinese items.
If excessive tariffs materialize, blockchain expertise can play an vital function in guaranteeing governments apply them pretty, in accordance to the executives. Blockchain can “actually enable you to show provenance […] proving the chain of custody,” Federico Kattan, Truebit’s chief expertise officer, advised Cointelegraph.
Trump’s proposed tariffs would rework world commerce. Source: Statista
For instance, an organization would possibly “assemble or do some packaging in a low-tariff nation after which import into the US at 10% as an alternative of 58%… [but] blockchain will help set up the place the product truly got here from,” Kattan stated.
Blockchain networks can improve provide chain transparency by recording each transaction on an immutable public ledger, tremendously limiting the scope for fraud throughout trillions of {dollars} price of imported items.
Trump’s proposed tariffs would influence $2.4 trillion price of imports, according to a report by the Tax Foundation. Retaliatory measures by different international locations could add to that determine.
Truebit is a blockchain community specializing in serving to customers add trustless verification to all kinds of purposes.
It is already in talks with software program distributors servicing the US authorities and has been engaged on a European Union-funded challenge exploring Web3’s potential function in world provide chains, the executives stated.
“We’re not but speaking straight to governments, however to the software program distributors attempting to interface with them — as a result of that’s the place we wish to be,” Jason Teutsch, Truebit’s CEO, stated.
Truebit’s native token has struggled since launching in 2021. Source: CoinGecko
Related: Trade tensions to speed institutional crypto adoption — Execs
Truebit was launched in 2017 and launched its TRU token in 2021. The token has a completely diluted market capitalization of $20 million, in accordance to CoinGecko.
Trade conflict dangers
However, a number of different crypto executives cautioned that tariffs pose serious risks to blockchain networks’ integrity and accessibility to customers.
Worsening commerce wars threaten to disrupt networks’ bodily infrastructure, fragment regulatory regimes, and censor customers, they stated.
“Aggressive tariffs and retaliatory commerce insurance policies could create obstacles for node operators, validators, and different core members in blockchain networks,” Nicholas Roberts-Huntley, CEO of Concrete & Glow Finance, advised Cointelegraph.
Magazine: Financial nihilism in crypto is over — It’s time to dream big again
