The resurgence of economic nationalism and protectionist trade policies since Donald Trump’s return to the White House has already triggered significant disruptions in global trade flows, the economic consequences of which could be recessionary in nature. In this article, first published by World Politics Review, S. Yash Kalash writes that in such environments, “digital assets offer several novel mechanisms for economic stabilization,” although “the deployment of digital assets as macroeconomic tools is fraught with structural, regulatory and geopolitical limitations.” Kalash looks at some of these mechanisms and limitations, concluding that the strategic utility of digital assets “will hinge on careful governance, institutional capacity building and multilateral coordination to ensure they support, rather than destabilize, an increasingly fragile global economic order.”
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