Trade negotiations and global relations : emerging players and actors

Ojo, Marianne and Serrano Caballero, Enriqueta and Joshi, Amol and Lahiri, Nandini and Hemmatian, Iman (2025): Trade negotiations and global relations : emerging players and actors. Published in: Trade Negotiations and Global Relations: Emerging Players and Actors (edited by Marianne Ojo Delaney and Enriqueta Serrano Caballero) ISBN 978-620-0-78340-0, Mauritius

Abstract

The executive order signed by President Donald J Trump on the 6th March 2025, which establishes a U.S crypto currency reserve, “creates a Strategic Bitcoin Reserve that will treat bitcoin as a reserve asset.”

Whilst there are enthusiasts in favor of the recent move, there are also concerns about how it will be implemented – as well as implications for taxpayers in the event of a collapse in prices. Concerns are consolidated further, primarily because there are several Bills still being considered in Congress – compounded with recent developments and turbulence in the crypto assets sector. Further concerns, primarily relate to governmental and political interference with the central bank’s role in monetary policy setting and, regulatory uncertainties.

The financial markets appeared to have weathered recent storms which dominated the financial landscapes in 2019 – namely trade wars, which spanned from retaliatory tariffs to currency devaluations – as well as impending imposition of digital sales taxes which even threatened to escalate retaliatory tariff wars even further. Reductions in interest and federal funds rates – unprecedented and surprising moves by the Federal Reserve, as first instigated in August 2019 to address anticipated global uncertainties – the first federal rate cuts since 2008, had left investors in a divided state of opinions. Partly because the rate adjustments had been considered unjustified.

However as 2020 revealed and demonstrated, the financial markets are yet to experience greater levels of uncertainty and volatility in the light of repercussions of the corona virus (COVID-19) outbreak - as it increasingly becomes evident that the real impact remains unknown. A clearer picture of the real costs and possible impending consequences of the outbreak (as well as failures to disclose real figures of underlying cases) will continue to be revealed through repercussions impacting the economy - including closures of small businesses, and particularly the health and medical sector.

Hence the impending challenges become even clearer. Not only is this a global problem – but also an issue of how respective regions and countries will be able to address and contain the risks emanating from contagion – as well as the availability of resources and facilities to address particularly, crypto currency and financial risks.

Amongst other objectives, this publication considers, as well as highlights, why the central bank’s independence is pivotal to its functions. Whilst close collaboration with the executive, and the legislature, are also essential to its functioning, the publication also highlights the immense contributions that can be derived from crypto currencies and stable coins – when adequately regulated.

• Item Type: MPRA Paper
• Language: English
• Keywords: crypto currencies ; central banks ; stablecoins ; financial stability, trade negotiations, governance, dispute resolution
• Subjects: E - Macroeconomics and Monetary Economics > E5 - Monetary Policy, Central Banking, and the Supply of Money and Credit > E58 - Central Banks and Their Policies; G - Financial Economics > G1 - General Financial Markets > G12 - Asset Pricing ; Trading Volume ; Bond Interest Rates; G - Financial Economics > G1 - General Financial Markets > G17 - Financial Forecasting and Simulation; K - Law and Economics > K2 - Regulation and Business Law; K - Law and Economics > K2 - Regulation and Business Law > K29 - Other; O - Economic Development, Innovation, Technological Change, and Growth > O3 - Innovation ; Research and Development ; Technological Change ; Intellectual Property Rights > O38 - Government Policy

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