Now picture a world where your local currency is about as wobbly as a three-year-old on a pair of roller skates. That is the harsh truth for so many in the Global South. Today, crypto offers that solution too—a digital escape hatch from the hardships of our new economic reality. Yet, is it really a road to freedom, or simply a created prison?

Autonomy or Access? Must it Be?

We’re promised that crypto is a world-changing financial equalizer. But who's really benefiting? As we foster these new ideas, are we truly empowering poorer countries, or just manufacturing a new set of dependencies in the name of innovation? The story frequently told is that central bank independence is somehow in conflict with access to global markets, and it’s presented as an either/or choice. But isn't this a false dichotomy? Have we all fallen under the spell of the path already most laid out before us? On a route often determined by the privileged few in power.

Trump’s recent, self-interest-fueled crypto embrace brings this into sharp relief. It’s a reminder of how readily individuals can warp stories to serve their political interests. This erodes the capacity of the Global South to respond to rapidly shifting geopolitical currents. This isn’t a question of innovation—it’s a question of power, influence and control. And who pays the price?

Whose Voices Are We Ignoring?

The discussion around regulating crypto has become severely out of touch with the lived experiences on the ground. We hear about blockchain technology and decentralized finance, but do we hear from the policymakers, economists, and ordinary citizens in the Global South who will be most affected by these changes?

The IMF, with its steeply unequal voting power that skews against the poorest countries, epitomizes this problem. Its regulations, though introduced as one-size-fits-all solutions to protect the planet, by nature strip the autonomy of developing nations. It’s akin to prescribing the exact same medicine to all patients without diagnosing their unique conditions. This isn't just ineffective; it's actively harmful. Are we truly listening, or just dictating?

We must prioritize the voices of people most affected by these choices. We need to know what they’re worried about, what they dream of, what’s different in their local context. Only then can we start to design better solutions that are more equitable and sustainable. We need to hear the stories of those who have lost everything to crypto scams, the small business owners struggling to navigate complex regulations, and the policymakers trying to balance innovation with financial stability. Their stories matter.

Tailored Solutions or Global Imposition?

The “one-size-fits-all” regulatory approach to crypto is a dangerous misunderstanding of the tech. That said, every nation in the Global South has its own specific challenges and opportunities. What is effective practice in one nation can be the exact wrong solution in another. To put it simply, let’s quit applying one-size-fits-all rules. Rather, we must enable developing countries to develop policies that align with their individual circumstances and priorities.

This would include pursuing alternative models of digital currency, shoring up regulatory structures, and investing in financial education initiatives. It’s probably going to take a less aggressive embrace of cryptocurrency. Implementing this strategy would put an emphasis on risk reduction and making sure all people reap the benefits equally.

Imagine a scenario where developing nations are given the resources and autonomy to develop their own digital currencies, backed by their own central banks. This would allow them to benefit from the efficiency and transparency of digital finance, without sacrificing their sovereignty or exposing themselves to the volatility of cryptocurrencies. Isn’t this a more hopeful vision for the future of our cities?

  • Empowerment: Give developing nations the tools and resources to shape their own financial future.
  • Collaboration: Foster open dialogue and knowledge sharing between nations.
  • Innovation: Encourage experimentation and the development of tailored solutions.
  • Resilience: Build stronger financial systems that are resistant to shocks and crises.

The "Less is More" Approach?

Here's the kicker: maybe the best approach is to back off. Maybe not having to contend with clunky, overbearing, paternalistic international regulation is exactly what the Global South requires to follow its own path. It's counterintuitive, I know. We’ve been trained to accept the idea that more regulations means more protection. But what if these same rules are making the problem worse?

Think of it like this: Over-parenting stifles a child's growth. Likewise, too much regulation can suffocate new ideas and entrepreneurial growth. Let’s allow developing countries the space to test, create, and invent. By working together, we can harness their potential and create a more inclusive international financial system.

This isn't about abandoning all regulation. Getting the balance between protecting consumers and supporting innovation. It’s not about telling developing countries what they should do, but rather empowering them to make informed decisions for themselves, according to their own specific circumstances. It's about recognizing that the solutions to these complex problems won't come from the top down, but from the bottom up.

The road to real equity isn’t built through good intentions and well-meaning regulations. This personal journey is rooted in empowerment and dignity. Most importantly, it faithfully amplifies the voices of our Black and Brown communities who have been sidelined for far too long. The Global South deserves the freedom to chart its own course, to forge its own financial future. Let’s allow them the room to change in that manner.