Opinion by: Marcos Viriato, co-founder and CEO of Parfin
Blockchain was created to decentralize authority and establish systems based on transparency rather than control. However, it is now being embraced by the very institutions it aimed to challenge.
Governments and corporations are integrating blockchain into their structures, transforming a tool meant for autonomy into one that fortifies oversight.
This transformation highlights a deeper contradiction. Ideologies are intertwined. From political donations to manifesto commitments, blockchain has turned into a political tool. This has altered the dynamics of power, trust, and governance in the digital era.
To foster innovation, institutions must lead by example. They need to create systems that are politically neutral, compliant, and interoperable, establishing a trustworthy infrastructure. Political narratives will always evolve, but financial frameworks should not.
Innovation at the intersection of politics
Innovation originates from builders and entrepreneurs, but once it begins to transform the economy, politics invariably follows. Emerging technologies are not only driving change but also becoming part of the political conversation.
In the UK, Reform’s “crypto renaissance” pledge has turned digital assets into a political identity. It links technological advancement with tax reductions, anti-debanking measures, and an innovation sandbox, recasting progress as a party promise rather than a communal goal.
In the US, the Make America Wealthy Again Super PAC’s acceptance of crypto donations signals a notable change. Digital assets are now mainstream components of political fundraising, integrating into campaign infrastructure and indicating political affiliations.
Regulations are evolving, but meaningful progress relies on discussions that prioritize innovation over politics.
In Argentina, with inflation on the rise and trust in the peso declining, many are opting for cryptocurrency. With one of the highest crypto adoption rates in the West, digital assets symbolize economic independence. However, President Javier Milei’s promotion of the LIBRA memecoin exemplifies how innovation can be co-opted for political gain.
Simply put, when a technology rises to prominence, political entities rush to seize it.
Politics distorts innovation
When politics infiltrates innovation, true progress becomes performative. Blockchain, crypto, and AI were created to tackle real issues: transparency, access, and efficiency.
Yet, these technologies are increasingly viewed as ideological symbols. Supporting blockchain is seen as a display of political allegiance, while doubt signals opposition. Blending one’s stance on political ideology with views on crypto is a perilous path. When this occurs, nations lose sight of innovation’s true purpose.
Related: Bitcoin’s invisible tug-of-war between suits and cypherpunks
The politicization of technology intensifies fear. These innovations already challenge established power dynamics and institutions; adding a political dimension transforms them into divisive tools rather than drivers of development. The future of innovation hinges on separating technology from ideology and implementing consistent, neutral regulations that foster real growth.
Build progress on trust
For institutions, the key question is not which political stance to adopt. It is about establishing secure, compliant, and dependable systems. In finance, that trust is built on creating systems that banks and regulators can rely on. When blockchain is designed with this focus, it shifts from being experimental to becoming foundational.
The future of finance will arise from technology that connects institutions and communities, bridging traditional finance with decentralized systems shaping the economy of tomorrow. Builders and policymakers must progress in tandem.
Innovators should embed compliance and interoperability from the outset. Policymakers need to develop clear, adaptive frameworks that empower innovators to build responsibly. Progress occurs when both sides evolve together.
Nigeria demonstrates how collaboration can thrive. There, blockchain is seen not as a political emblem but as essential infrastructure. The government’s National Blockchain Policy aims to incorporate blockchain into healthcare, education, and land registration while establishing a trusted public-private partnership framework. It serves as a model for principle-driven policy.
To inspire others, the focus must shift toward governance that empowers rather than controls. Policymakers should emphasize clarity over confusion and accountability over mere appearances. Builders must design systems that banks, regulators, and users can trust and comprehend.
Opinion by: Marcos Viriato, co-founder and CEO of Parfin.
This opinion article presents the contributor’s expert view and it may not reflect the views of Cointelegraph.com. This content has undergone editorial review to ensure clarity and relevance; Cointelegraph remains committed to transparent reporting and upholding the highest standards of journalism. Readers are encouraged to conduct their own research before taking any actions related to the company.
This opinion article presents the contributor’s expert view and it may not reflect the views of Cointelegraph.com. This content has undergone editorial review to ensure clarity and relevance; Cointelegraph remains committed to transparent reporting and upholding the highest standards of journalism. Readers are encouraged to conduct their own research before taking any actions related to the company.
