El Salvador, the first country to use Bitcoin as legal tender, is led by Najib Bukele, another far-right candidate and widely considered a dictator. Similarly, in Brazil, former President Bolsonaro, also right-wing, is seen as a strong supporter of Bitcoin. In early 2022, before handing over the presidency to President Lula, he enacted a bill allowing crypto trading and payments in Brazil.
Turning to the USA, with an eye on the upcoming presidential elections scheduled for November 5, 2024, it's evident that Republican candidates (the right-wing in the USA) are mostly in favor of cryptocurrencies. Ron DeSantis has often stated that people have the right to use Bitcoin, pledged to abolish state CBDCs, and criticized Biden's efforts to limit Bitcoin usage. Vivek Ramaswamy, another prominent crypto advocate and US presidential candidate, has accepted Bitcoin donations for his campaign and argues that Satoshi Nakamoto's currency should not be regulated like a stock.
Donald Trump is perhaps the least favorable candidate, as he has never directly expressed opinions on the crypto topic, although he has stated in the past that he is not a fan of BTC. However, he has raised funds through a series of NFTs in his name that have been moderately successful.
But weren't Bitcoin and crypto left-wing? According to several experts, Bitcoin was invented during the 2008 financial crisis to seek a payment alternative not tied to banks and state interference. This theory, however, finds no confirmation in Satoshi Nakamoto's writings, which are very limited. Nonetheless, the underlying concept remains: to have a payment alternative to banks, which deduct a significant portion of the global GDP annually in the form of fees.
Furthermore, BTC and cryptocurrencies are often used in countries where inflation is rampant, and despite their fluctuations, they are the only way to contain the erosion of savings for poorer citizens. Therefore, if we consider traditional finance predominantly right-wing, it's easy to understand why Bitcoin and crypto, which oppose this scheme, must be considered a left-wing asset. So why are they so loved by the right?
The Misunderstanding Explained! The main problem is that Bitcoin and cryptocurrencies constitute a real enigma for institutions that have never fully understood them. If we consider right-wing and left-wing economic policies, in general terms, it could be argued that the right has a more liberal and unscrupulous view of finance, while the left is more associated with welfare and sustainability policies. This is, of course, a simplification with many exceptions.
It becomes clear why the right is more interested in a product like cryptocurrencies that propose a more decentralized and less controlled finance. The left, on the other hand, has shown caution but also a certain aversion primarily related to environmental issues. Bitcoin consumption is targeted, another much-debated and still challenging topic for those not up to date on emissions, as BTC currently mainly uses renewable energy, which is also less expensive.
To further complicate matters, there are Central Bank Digital Currencies (CBDCs), also known as state digital currencies, another asset that risks being ruined by individual country interpretations. A Central Bank Digital Currency (CBDC) is a type of digital currency issued by a central bank rather than a commercial bank.
It is no coincidence that CBDCs are particularly liked by authoritarian right-wing governments, which are only distant relatives of Western right-wing ideologies. Among the strongest supporters are countries like China and Russia, which do not adhere to democratic rules. Here, state digital currencies (CBDCs) could become an even more efficient way to control citizens.
And Italian politics? Italian politics deserves a separate chapter. In 2022, only the League and the 5 Star Movement had included cryptocurrencies in their programs, as we had indicated in our analysis of political parties and cryptocurrencies. The Meloni government introduced the new crypto law in Italy, which we have reported on several occasions, effectively allowing a regularization of investments to date.
Those who want to comply with tax regulations can pay a reduced penalty of 0.5% of the total for each year of unmonitored activity. The calculation starts from 31/12/2021 if no conversions to fiat currency have been made. Otherwise (conversion to fiat with capital gains before 31/12/2021), one can regularize by paying a substitute tax of 3.5%, plus 0.5% for each year of unmonitored activity.
More than taking a stance on cryptocurrencies, it is a way to generate revenue by bringing hidden assets to light for tax purposes.