Web3 experts emphasize that the ongoing trade war could also serve as a catalyst for innovation within the blockchain space, while presenting challenges. However, they argue that fostering a global unification mindset can help mitigate the divide effects of trade wars.
Decentralized governance can mitigate conflicts caused by protectionist policies
As the US-China trade war intensifies and exposes the challenges of unilateral action in globally connected economies, blockchain and Web3 experts advocate for different strategies. Andrei Grachev, managing partner at DWF Labs, argues that decentralized technology provides important insights for navigating complex international conflicts.
“Trade tensions include mutual actions such as tariff responses, complicating the issue,” Grachev said. He emphasizes the interconnected nature of modern trade conflicts. There, actions in a country often trigger retaliation measures.
DWF Labs executives reportedly said that the US escalated the TIT tariff war and imposed an additional 100% tariff on Chinese imports. This latest measure has effectively raised total tariffs on goods derived from China’s 245% salary.
Washington defends the action as a necessary response to Beijing’s own retaliatory tariffs and export restrictions, including restrictions on critical material essential to the high-tech and defense industry. The Trump administration also cited national security concerns, arguing that China’s trade practices pose a threat to America’s economic and strategic interests.
Grachev, on the other hand, contrasts with the actions of the state and the joint nature of blockchain and Web3 space. “Open collaboration helps us navigate these economic storms. Decentralized projects often run more smoothly across borders than traditional systems.”
He believes that the open source spirit of blockchain provides a framework for solving cross-border problems. Development of open sources with transparency, shared contributions, and decentralized governance can reduce the escalation of conflicts caused by unilateral and protectionist policies.
“If effective, open source offers an alternative solution to traditional policy tools,” concludes Grachev.
Policymakers can learn from the crypto industry
Ben Caselin, CMO of Africa-centric cryptocurrency Valr, supports this and adds a broader perspective. Caselin emphasizes the need for policymakers to recognize this interconnectedness, and is similar to Crypto’s joint spirit.
Policymakers can learn from Crypto’s cross-border collaboration that promotes innovation while respecting differences. Progress requires recognition of shared fate.
The CMO warns against unilateral action: “One-sided movement disrupts the balance of interdependence.” He prioritizes dialogue and trust building, and advocates mutual interest as a principle of guidance. “No nations thrive in isolation. Dialogue and trust aimed at mutual benefits are important.”
Based on Valr’s experience, Caselin highlights the benefits of an open system. “The open system unites diverse actors towards a common goal, a model of global trade.”
The trade war has fueled fears about the global recession, but players in the blockchain and Web3 space will see an increasing demand for decentralized solutions, promoting collaboration between Web3 projects to create interoperable solutions. Explaining how the trade war affects Web3, Caselin said:
“The trade war reveals the limitations of a split system and raises interest in borderless blockchain solutions.”
Caselin believes the resulting volatility bypasses traditional barriers to adopting Web3 tools, such as decentralized financial and tokenized trade assets. “Volatility encourages businesses and individuals to use Web3 tools such as Defi and tokenized assets to avoid tariffs and intermediaries.”
Caselin emphasizes philosophical change beyond practicality. “The decline in trust in a centralized system encourages searching for alternatives that reflect interconnected reality,” he says, adding to the growing interest in cryptocurrencies and the possibility of improving financial access, as seen in Valr. “As trust in a centralized system fades, people are seeking alternatives that reflect an artificially boundary-free world. At Valr, curiosity is growing about the possibility that Crypto will enhance financial access.”
However, Caselin believes widespread adoption requires a fundamental change in perspective. “But widespread adoption requires a transition to seeing humanity as a single family. Trade conflicts may spur innovation, but lasting change means redefine loyalty across nations.”
Grachev is also working on the impact of the trade war on blockchain development. “While the trade war does not directly promote blockchain development, geopolitical uncertainty enhances the appeal of flexible, transparent options.”
DWF Labs executives also believe that Web3 aims to connect, rather than replace existing systems. “The Web3 community aims to connect, not as an alternative to the traditional trading system.” Instead, he sees technology as a complement. “We have seen efforts to close the gap, and we are offering alternatives that are inefficient, expensive or exclusive to our current systems. This is to expand our toolkit.”
