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Author: Brian Armstrong, CEO of Coinbase; Compilation: 0xjs@Bitchain Vision
In the United States, people vote for more economic freedom and free markets when they elect Donald Trump in 2024.Canada also seems to have embarked on a similar path to Pierre Poilievre.Argentina President Mile and Latin American El Salvador President Bukele led the campaign in 2023.In the UK, Starmer is turning to a supportive agenda of technology and innovation in an attempt to attract more voters, while in Germany, Schultz is likely to be elected soon as the economy slows due to poor fiscal policy.
We are at a critical moment in history: the world is beginning to realize the dangers of big government, seeing it hurts the people it claims to protect the most, and never works in practice.However, some people are still moving in the wrong direction.China rose under Deng Xiaoping’s free market policy.
Economic growth stems from free market capitalism, deregulation, small government and technological innovation.Economic growth has brought about a decline in prices, an increase in employment opportunities, an increase in tax revenue, and improvement in health care.The best way to get people out of poverty and create prosperity for all is not socialism, but free market capitalism.If other G20 countries want to participate in economic prosperity, it would be wise to join the growing trend of embracing economic freedom and free markets.
At Coinbase, our mission has always been to improve the world’s economic freedom.Just like freedom of speech or religious freedom, economic freedom is crucial to prosperous societies and civilization progress.We believe that cryptocurrencies are the most important technology that can bring economic freedom to the world.
Everyone around the world cares about and deserves economic freedom.According to our survey, more than three-quarters of adults around the world say they want more economic freedom.This is not surprising, as economic freedom has proven to increase happiness, improve literacy, improve the environment, and many other positive social indicators (by the World Bank, Pew Research Center, and World Economic Forum).
However, economic freedom is declining, and the world economy is mostly not free.
We have been on the right path for the past 100 years – economic freedom has continued to rise, but in the early 21st century, things have taken a sharp turn.The average score of global economic freedom is currently the lowest since 2001.The result: Most economies around the world are mostly considered unfree and even suppressed.
In the United States, this means that living standards are declining and most people feel that the American dream cannot be realized.Only 14% of Americans are optimistic about the future of the financial system.Around the world, 70% of adults now say their children will have worse financial situations than their parents.The loss of economic freedom has caused people to lose confidence in this system.
What is the reason for the recent rise of socialism?Why is this experiment constantly being tried?It seems that there is something in human nature attracted to socialism, and every generation needs to learn lessons through hard ways.For some, this practice is out of a sincere desire to help others without realizing that these policies have hurt the people they claim to help.For others, they use ignorant people to gain power, or this practice stems from deeper hatred for themselves or humanity.
For whatever reason, history tells us that whenever we face challenges, we as a species can invent creative solutions.From printing presses to steam engines, from electricity to the Internet—every breakthrough revitalizes the economy, gives people strength, and promotes civilization progress.Cryptocurrency is the next chapter of this story.
Cryptocurrencies Can Begin Next Chapter in Capitalism: The Era of Economic Freedom
Coinbase’s core argument The widespread adoption and use of encryption technology will increase economic freedom.This is based on the promise of crypto-technology to create a global economy, driven by technology and people rather than governments, anyone with an internet connection can participate, property rights are enforced, and currency is maintained.This is not a dream.Cryptotech has created more economic freedom for real people today:
1. Stable currency:Stablecoins are expected to become the next killer app for cryptocurrencies, with trading volumes growing more than three times year-on-year to about $27 trillion.Stablecoins are becoming part of people’s daily financial life, not just trading, especially in emerging markets, leading the world in adoption of stablecoins.Five million Argentines actively use cryptocurrencies for daily trading and saving the dollar is the second most popular emerging market use case.
2. Free trade:Cryptocurrencies operate on global networks without being restricted by middlemen and national borders, thus facilitating free trade.L2 can now complete global transactions in less than 1 cent in 1 second, making cryptocurrency the only payment method that meets all 3 conditions: fast, cheap, global.This brings unprecedented trade freedom to individuals and businesses.Simple cryptocurrency sending is instant, inexpensive, and without imposed restrictions – unlike traditional services that are usually regionalized and/or have restrictions on transaction frequency and amount.Just ask people why they use cryptocurrencies.A Visa study found that one of the top reasons why people use cryptocurrencies in Australia, Brazil, Germany, Hong Kong, South Africa, the United States, and the United Kingdom is freedom of transactions and lower fees.
3. Property Rights:Cryptocurrencies achieve secure and enforceable ownership by replacing courts or intermediaries with code and encryption security.Governments are turning to cryptocurrency to resolve>5 billion peoplePeople lacking proof of home/land ownership around the world.On blockchain, ownership is not tampered with, and smart contracts can be used to automate and execute the rights brought by ownership.For example, Georgia is putting land records on the blockchain, and Sweden is testing cryptographic systems for land registration.
4. Access without permission:Cryptocurrencies are eliminating boundaries to build a more inclusive global financial system where people can keep more hard-earned money and do more with it.Decentralized Finance (DeFi) is revolutionizing access to financial services, providing equal opportunities for anyone with an internet connection, from rural entrepreneurs to 1.4 billion unbanked people, to participate in the global economy.
The adoption and use of cryptocurrencies have reached the speed of escape.Almost 7% of the world now owns cryptocurrency, as people are turning to it to solve practical problems:
How to improve economic freedom in 2025
World Leaders and Policymakers: It’s time to embrace encryption + technological optimism to accelerate economic freedom and human progress.Here are four practical things you can do this year:
1. Ensure that cryptocurrencies flourish on the shore through laws.Cryptocurrencies are a novel and unique technology that should not be bound by outdated laws.Policy makers should focus on developing clear, forward-looking regulatory frameworks to foster this innovation rather than pushing it overseas – otherwise they may fall behind.
2. Establish strategic Bitcoin reserves.It is the best performing asset class since its inception and has cemented its position as an inflation hedge.The next global arms race will unfold in the digital economy, not in the space.Bitcoin may become the foundation of the global economy like gold and will be the core of national security, as Bitcoin holdings can change the balance of power between countries.Governments will compete to establish strategic Bitcoin reserves to safeguard and enhance their economies, while countries without Bitcoin reserves will lose their foothold in the digital age.
3. Support the special economic zones so that builders can freely try out various big ideas.You can use the sandbox to experiment and innovate safely so that builders can learn while doing.We have seen that this approach has achieved good results in the history of cities such as Shenzhen and Hong Kong, and new projects, including Prospera, have the potential to accelerate innovation by adopting encryption technology.
4. Improve government efficiency.Similar to what Milei and DOGE did, we re-recognize that excessive big government does not effectively solve the problem, and often the problem itself is the problem.No matter who you are or where you are, cryptocurrencies are for you.Even if you don’t own or use cryptocurrency-powered financial services, you will still benefit.Cryptocurrencies act as a check and balance force for the people, checking and balancing strict governments, over-regulation, legal warfare, rising deficits and limited innovation.
All: We should all demand and build a path forward that will allow builders, innovation and free markets (not governments) to be the drivers of economic growth.We must embrace economic freedom.Civilization progress depends on this.
