Crypto’s global nature shields it from tariff shocks, says Offchain Labs exec

Cryptographic markets are shaped by the same macro forces that scare traditional financial markets, but their international and borderless nature offers a protective layer, according to the co-founder of Offchain Labs and chief scientist Edward Felten.

Speaking on “Squawk box from CNBC Asia“, Felten noted that the recent volatility of cryptographic markets is driven by broader concerns concerning world trade and economic policy. The source results from uncertainty surrounding the American prices and the comments of President Donald Trump.

Offchain Labs is the team behind ArbitratorOne of the main Ethereum (Ethn) Layer 2 layoffs.

“The whole world is trying to understand, really deciphering what President Trump says, which he wants to do with the prices, what is his final goal.”

The borderless nature of the crypto offers a strategic advantage

Despite the short -term volatility, Felten underlined an increasing feeling of long -term optimism in cryptographic space.

“People are more optimistic in the long term because technology continues to develop,” he said. “We see much more adoption by institutions and much more regulatory clarity.”

When asked if Trump’s attention on the American trade deficit could meet his interest in the crypto, Felten rejected the idea that crypto is limited by national borders.

“I think the crypto is intrinsically international,” he said. “When I think of the development teams we have and customers who use technology, we do not consider it a partitioned by the nation. It is really an international community intrinsically and a set of businesses. ”

Felten stressed that even if cryptographic markets are not immune to global economic turbulence, they are less affected by the types of trade barriers that can disrupt other sectors.

“We feel the turbulence of general markets,” he said. “But we do not have the same kind of obstacles to the borders you see in some other markets.”