Organizations such as the G20 have an important role to play. This group is called into life to fight protectionism and facilitate free trade. That no longer seems to be the case, though, as the public endorsement of free trade has been dropped. This decision comes on the heels of meeting with the Trump administration, which cannot be a coincidence by any means. Thankfully, cryptocurrency-based marketplaces will always allow free trade, regardless of political decisions.
The news comes as quite a shock to consumers and economic experts alike. Even though there were concerns over the G20’s course of action, no one expected this change so soon. As of yesterday, the world’s 20 leading economies will no longer endorse free trade. Moreover, they will no longer combat protectionism, which does not bode well for any economy around the world.
Interestingly enough, some of the G20 members wanted to stay the current course. Mainly Australia and China see the benefit of global free trade and fighting protectionism. On the other hand, the majority of members agree with the Trump administration on changing the rules. Keeping in mind how free trade underpins the global economy, this change of direction is not positive news. In fact, free trade efforts were doubled after the 2008 financial crisis. Changing the game now will result in a global financial turmoil, rather than anything else.
G20 Sets Out To Destroy The Global Economy
It is evident the US is not too bothered by global free trade right now. After pulling out of a vast trade deal in the Pacific, things got off to a rocky start. There is also the plan to tax on imports to the US. Moreover, the ongoing spat with Mexico will hinder free trade as well. President Trump wants to embrace protectionism to make America great again. His chance of success in this regard is nearly zero, though.
While the G20 may not see the benefit of free trade any longer, there are ways to circumvent their decision. Decentralized marketplaces, such as OpenBazaar, allow anyone in the world to buy and sell goods with ease. In fact, these marketplaces allow free trade in exchange for cryptocurrency payments. One drawback is how this principle relies on traditional shipping services, which will be affected by the G20 decision in the long run. Then again, it is a viable alternative to bypass free trade restrictions.
It is evident something will need to change sooner rather than later. Entities such as the G20 can destroy the global economy with a few decisions like these. While some cryptocurrency enthusiasts look forward to that happening, it doesn’t necessarily bode well for any of us. Protectionist policies are a real that that will affect cryptocurrency as well. Decentralized marketplaces are the way to go, albeit they are only the first step along the path to maintain global free trade.
Header image courtesy of Shutterstock