The U.S.-China trade war’s conclusion is far beyond the horizon. Considering that the tension between these two major world powers is increasing by the day, it’s hard for other countries to stop themselves from panicking. Expressing his concern, French Finance Minister Bruno Le Maire noted that the escalating tension could lead to an economic crisis throughout the world
In the case of such countries that had minimal say over the world economy, the U.S. found it easy to slap tariffs and sanctions over them and boast of its victorious outcome. With China — which is itself a major world power peeved at the U.S. — things might find a rough conclusion, to say the least.
The recent trade tension between the U.S. and China has already started putting economic pressure over European nations, said the French Finance Minister.
Economic Crisis: France and Germany Caught in the Crossfire
Maintaining a good relationship surely doesn’t come easy. Though not directly involved in the trade war, European nations are suffering the cost. While Le Maire stated that France and Germany are the two nations that are exposed to maximum damage, the trade war, he said, is sure to bring on “an economic crisis all over the world.”
France, as the news earlier surfaced, had already been requested by the U.S. to ban networking equipment from Chinese tech company Huawei.
Everything now rests on results of the upcoming meeting between the U.S. President Donald Trump and the Chinese President Xi Jinping.
How About a Crypto Economy?
Earlier this year, Le Maire had declared a $5 billion investment into evolving technologies, including blockchain, in order to get over the technological dominance of the U.S. and China. He had also proposed to his ministers to adopt crypto-positive regulations after admitting that he’d been wrong to not consider cryptocurrencies as a technological breakthrough.
In light of the predictions about the oncoming economic crisis and the world economy losing balance due to the greed of world powers, it would not be wrong to say that a decentralized economic system would have been completely resisted to such centralized trade issues.
Cryptocurrencies, some of which have value not controlled by any central entity, have so far proved quite important in hyperinflation-stricken nations such as Venezuela and Turkey. With the world economy at risk of annihilation, a currency not controlled by anyone seems like a much sound option as compared to centralized fiat currencies.
Do you believe that the world economy is at the risk of falling? Would it boost cryptocurrencies and make them mainstream? Don’t forget to let us know your thoughts in the comments below.
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