TechFlow reported on February 26 that Balaji Srinivasan, former CTO of Coinbase, posted a message indicating that tariff policies might be detrimental to the U.S. economy but beneficial for cryptocurrency development. He analyzed that tariffs harm the U.S. economy because production cannot be ramped up in the short term while prices can rise immediately; bringing production back is more difficult than establishing it initially; and the U.S. profits far more from currency issuance than from manufacturing.
On the other hand, tariffs benefit cryptocurrencies because international capital will shift on-chain, while nationalism and socialism rise offline; the only truly binding cross-border contracts will be smart contracts; people may no longer trust economic commitments made by nations, but they can trust the mathematical guarantees provided by cryptography.
