Colonialism and Crypto

I recently finished writing my comps exams. A lot of what I was thinking and writing about is still floating on the surface of my mind. What I have been exploring are the deep connections of racism and colonialism to present day capitalism and the rise of digital currencies, and specifically, cryptocurrencies. Despite what many people think, cryptocurrencies didn’t appear out of nowhere. They aren’t just a sudden invention of tech bros in Silicon Valley. Crypto started from a resistance, response and protest of our global economic order.

Today’s global economic order is deeply rooted in the legacy of colonization. To understand the rise of digital currencies like Bitcoin, we must first confront the colonial foundations of our financial systems. The quest for wealth and dominance during the colonial era established the groundwork for today’s neoliberal capitalism — a system that thrives on economic asymmetry, racial and gender hierarchies, and the continuous expansion of capital at any cost. Colonization has not only shaped global economics but also entrenched power structures that still define the way money flows and who benefits from it. Understanding this history is essential to grasp the potential and limitations of cryptocurrency in reshaping the future(s) of finance.

The Colonial Roots of Capitalism and Cryptocurrencies

Colonization was never just about territorial conquest — it was fundamentally about wealth extraction and control. European powers pursued gold, land, and resources with ruthless efficiency, constructing global trade networks that laid the foundation for modern capitalism. But economic exploitation was not limited to land and resources; it extended to human beings. Colonization introduced race and gender as essential categories for organizing labor, wealth and power. Enslavement, forced labor, and the commodification of human life were baked into the capitalist model. This legacy remains alive today, as racialized and gendered disparities in income, wealth, and access to financial services persist globally for women, poor people and Black and Indigenous people and people of colour.

The rise of neoliberal capitalism in the late 20th century further entrenched these disparities. Neoliberalism — characterized by privatization, deregulation, and the reduction of social safety nets — reinforced the dominance of financial markets while shifting economic risk onto individuals. Those at the margins of the global economy have borne the brunt of these shifts. This structural inequality makes it difficult for marginalized groups to access traditional financial systems, locking them out of opportunities for wealth creation and economic stability.

The Rise of Cryptocurrency

Bitcoin, launched in 2008 by the pseudonymous Satoshi Nakamoto, was designed as a decentralized alternative to government-controlled monies. Bitcoin was born out of resistance and frustration with the currency economic system. Bitcoin was a disruptive financial technology that was a direct response to the 2008 financial crisis. In Bitcoin’s early days, it was praised for its ability to circumvent traditional banking systems, making it a preferred way to engage in illicit activities. It promised transparency, fast transactions, and financial autonomy — values that directly challenged the opacity and inefficiency of traditional banking systems. However, it has been well over a decade and a half since the rise of crypto, and while governments still fear the way crypto can be used for illegal activity, it has also inspired new ways of thinking about and understanding money. Cryptocurrencies like Bitcoin operate on blockchain technology, which allows for secure, peer-to-peer transactions without intermediaries. This structure has the potential to empower individuals who have been excluded from traditional financial systems, especially in regions where banking infrastructure is weak, unstable or corrupt.

Cryptocurrency’s Potential and Pitfalls

Cryptocurrency holds the potential to increase financial inclusion and empower marginalized communities — but only if its development and governance address the structural inequities of capitalism. In many parts of the global south, where access to formal banking is limited, cryptocurrency offers a way for people to save, transfer, and invest money with fewer barriers. Cross-border transactions using cryptocurrency can reduce fees and increase access to global markets.

Yet, technology and money are never neutral. The risks associated with cryptocurrency — including price volatility, regulatory uncertainty, and security vulnerabilities — disproportionately affect those who are already economically marginalized. Without proper safeguards, the rise of cryptocurrency could deepen existing inequalities rather than resolve them. The introduction of new financial technologies must be accompanied by thoughtful consideration of how these tools affect the most vulnerable populations.

A Call for a New Economic Vision

The rise of cryptocurrency presents an opportunity to rethink how wealth is created and distributed. Rather than replicating the patterns of exploitation and exclusion that define traditional capitalism, cryptocurrency could pave the way for more democratic and equitable financial structures. This requires intentional action: creating regulatory frameworks that protect consumers, ensuring access for marginalized communities, and promoting financial literacy and technological access.

Importantly, any effort to use cryptocurrency as a tool for economic justice must start with an acknowledgment of the colonial roots of the global economy. Without addressing the legacy of colonialism and the racial and gendered hierarchies it produced, new financial systems risk reinforcing and deepening old patterns of inequality.

About the author: Natalie Sotelo is a PhD candidate studying the social, economic, and cultural impacts of cryptocurrencies, focusing on financial inclusion and evolving economic systems. Her research examines how emerging financial technologies shape behaviors, participation, and narratives in the global south.

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