Kalam Crypto #143: Trump Tariff Wars, Bitcoin Impact, USDT Launches on Lightning

“You don't need more time. You need more focus. Time isn't the constraint. Your choices are.”

Ahlan wa sahlan, and welcome to the 143rd edition of CoinMENA’s weekly newsletter, Kalam Crypto!

This week, we’re diving into a packed lineup of stories shaping the crypto world. From escalating tariff wars between the U.S., China, Mexico, and Canada, and their impact on Bitcoin, to Tether’s groundbreaking integration of USDT on the Bitcoin Lightning Network and its record-breaking 2024 profits. Plus, the EU makes headlines with its decision to exclude Bitcoin from the ECB’s reserves.

All this and much more await you in this week’s edition of Kalam Crypto, let’s get started!

Global News 🌍

Trump Updates: Tariff Wars, Inflation, and Bitcoin's Role: President Donald Trump's announcement of steep tariffs of 25% on imports from Canada and Mexico and 10% on Chinese goods has ignited a tariff war, with all three countries threatening retaliatory measures. This escalation will drive up costs for producers, who are likely to pass these increases on to consumers, further exacerbating inflation. While Bitcoin can behave like a risk asset during the short term, its role as a hedge against inflation and economic uncertainty becomes increasingly critical in times like these.

Long-term investors are focusing on Bitcoin's fundamentals, including its capped supply of 21 million. In 2024 alone, institutions acquired over 800 thousand BTC, highlighting growing confidence in its value as a store of wealth. 

In related news, President Trump signed an executive order to establish the first U.S. sovereign wealth fund, led by Howard Lutnick and Scott Bessent, both known Bitcoin holders, marking a significant development in U.S. economic policy.

Tether's Reports Monster 2024 Profits, Highlighting the Rise of Stablecoins: Tether, the most profitable company on a per-employee basis globally, has achieved remarkable financial success, with net profits exceeding $13 billion and equity surpassing $20 billion in 2024. This success has sparked interest from banks and fintech companies eager to launch their own stablecoins, recognizing the lucrative potential of this financial innovation.

At the forefront of crypto's most significant use case, Tether's USDT is revolutionizing the way digital dollars are moved, offering a more efficient alternative to traditional systems like SWIFT. By enabling faster and more cost-effective cross-border transactions, crypto is transforming the global financial landscape, poised to reshape how international transfers are conducted.

USDT Launches on Bitcoin’s Lightning Network: Tether has announced the integration of USDT into Bitcoin’s ecosystem, including its base layer and the Lightning Network, powered by Lightning Labs’ Taproot Assets protocol. While the majority of USDT transactions currently move via Ethereum’s ERC-20 or Tron’s TRC-20, this groundbreaking move brings the world’s largest stablecoin to the most decentralized and secure network in the world: Bitcoin. By combining Bitcoin’s unmatched security and decentralization with the Lightning Network’s speed and scalability, this integration enables high-speed, low-cost transactions for USDT, which serves over 350 million users. The move unlocks new use cases, such as microtransactions, remittances, and cross-border settlements, while reinforcing Bitcoin’s role in the global financial system. 

Change of Leadership for Ethereum? An informal vote among Ethereum supporters revealed overwhelming support for Danny Ryan to lead the Ethereum Foundation, with 99% of 300 wallets, collectively holding over 50,000 ETH ($160 million), backing his candidacy. Developer Fabrice Cheng initiated the vote to provide the community with a "peaceful" and "objective" way to voice their opinion, though it holds no official weight. "Ethereum's greatest strength has always been its social layer, and ensuring the community has a voice is vital for its future," Fabrice Cheng said. While Ethereum co-founder Vitalik Buterin retains authority over EF leadership decisions until governance reforms are implemented, Ryan has expressed strong interest in the role, signaling a potential shift in the Foundation's leadership.

Keep an eye on 👀

Bitcoin dominance has risen to over 60% of the cryptocurrency market.

Blog of The Week ✍️

CoinMENA CEO and Co-Founder Talal Tabbaa shares his thoughts about the latest disruption caused by DeepSeek, and its potential impact on Bitcoin.

FacePalm of the Week 🤦‍♂️

“The EU is addicted to losing.”

Tweet Of The Week 🐥

CoinMENA News 🗞️

Refer & Earn: Your network is your net worth! With the CoinMENA Referral Program, you can turn your connections into cash. Invite friends to join CoinMENA, and you’ll both earn $5 for every successful sign-up (when your friend verifies their account). Let’s grow together!

Quiz Corner ✅ 

Last week’s question What is the main objective of President Trump's executive order regarding cryptocurrency? The correct answer is B) To position the U.S. as the global leader in crypto

This week’s question is, who is the most profitable company in the world on a per-employee basis? A) JP Morgan

B) Goldman Sachs

C) Tether 

D) Saudi Aramco

See the answer in next week’s newsletter. Or check out our learning platform https://university.coinmena.com/